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I recently conducted a poll to see how many #setups the average #trader employs.
Overall, four setups came out slightly ahead; let's look at why this can be useful to a trader.
Expand to know how to smooth out your equity curve:
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Overall, four setups came out slightly ahead; let's look at why this can be useful to a trader.
Expand to know how to smooth out your equity curve:
1⃣
Let's start with positive and negative correlations because they're crucial.
A positive correlation is a relationship between two variables that both respond positively to the same stimuli.
A negative correlation (which we will use) is the inverse(+-)
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A positive correlation is a relationship between two variables that both respond positively to the same stimuli.
A negative correlation (which we will use) is the inverse(+-)
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If you currently have four setups, we will need to ensure that they have been backtested and forward tested over a large enough set of historical data to prove that your setups have an edge.
We then can classify them. Assume we have two trend and two mean reversions setups.
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We then can classify them. Assume we have two trend and two mean reversions setups.
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