ShaunWhite wrote: ↑Sat Jun 16, 2018 8:59 pm
If your handicaps were profitable why did you ditch them? ie why were you looking at the loses without looking at the bottom line.
I'm not one for stagnation. We've all gotta be working & improving on our edges 24/7 isn't that right? Or they'll be stolen from under our noses by Mr. Lightwing?
Euler: "So I then developed a strategy that didn't trade at random and noted where the big losses came from. I then started working on striking them out."
(basically, I took that statement literally - maybe I could blame curse of knowledge
)
But what I found was that by fiddling around (incorrectly), & trying to improve, can irreparably damage a strategy (either by lack of trades as the edge improves, or lack of scale, or both) - to the point where the time would've been better spend in the sun!
Just how does one know the true limits to a strategy? - massive question that one
Someone like Crazyskier is the perfect example (along with me). Just why can't he solve those scalability problems, & become a top top trader? & when he does try to solve those problems, the edge completely erodes.
I'm very much pro (
pre-trade) psychology (i.e. hours prior - analysing data, survivorship bias) - but what you'll find is there's nothing on how to protect yourself from these data biases.