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Trading is all about probability and reward-to-risk ratios under specific market conditions. While you cannot predict the future, you can get a good idea what your performance will be through statistics and proper sampling under the different possible market conditions.
This is what I mean when I say to treat trading like a business. Through backtesting under different market conditions, you will know how your business will do during certain seasons. You will then make a decision whether you want to trade during your low margin seasons or
create filters that systematically tell you when to move to cash as you approach the bad seasons.
Then you create filters that tell you when you are approaching your best seasons and double your size. https://twitter.com/Trading_Boxes/status/1305602472325464064?s=20
Then you create filters that tell you when you are approaching your best seasons and double your size. https://twitter.com/Trading_Boxes/status/1305602472325464064?s=20
That way your performance on double the size will cover the seasons you choose to go to cash or move towards defensive names. This is how I've customized my system based on my objectives. There are systems that work year round bc that creator has customized it 4 their objectives.
Now, if u do decide to trade during a season that doesn't reward ur current system. You create another system that is specific to that season. Just like I recently incorporated a index specific box system. This way I can generate cash flow while my other system is in cash.
