Trading risks hidden in probability are often misunderstood in the world of trading probabilities and backtesting. We begin by breaking down the difference between theoretical/statistical probability and contextual/situational probability, focusing on what most traders rely on: theoretical probability. John explains how traders use tools like option Delta to estimate probabilities and why these estimates might […]
backtesting
Why Backtesting Gives False Confidence
Why Backtesting Gives False Confidence is important for traders to understand. If your first question about a new trading strategy is, “What have the back test results been?” please listen in. We do have trading results since 2012 but…. Click here or in the video to get the details! Subscribe: YouTube 00:00 Intro 00:39 Backtesting Topic […]
The Road Trip Trade
Clark Griswald (talking about Aunt Edna): She can’t weigh more than 100 pounds. Ellen Griswald: Oh no. You can’t just put her on the roof. Audrey Griswald: Yes, he can! Clark Griswald: You want me to strap her to the hood? She’ll be fine. It’s not as if it’s going to rain or something. Ah…Family Vacation. We […]
