Algo Trading Improvement Tip - What Is It?

[@iameladlevi]

“Just wait” a golden advice! People rushing with real money before real validation.

[@AlgoTradingWithKevinDavey]

VERY very hard to do!

[@nicknikolic8472]

Simplicity and conservative approach is the best! Thanks Kevin.

[@AlgoTradingWithKevinDavey]

You bet!

[@RainierDennis]

The single piece of advice that made a huge difference in my algo strategies was to simplify and avoid overfitting - thanks for sharing your wisdom!

[@AlgoTradingWithKevinDavey]

Glad it was helpful!

[@ryanflach7010]

Like always….great information. You are one of the few trading educators that tell the truth. No snake oil sales.

[@AlgoTradingWithKevinDavey]

I appreciate that!

[@SuperUltraProject]

Great tip to take it slow and wait till the strategy has proven itself! Never rush taking a strategy live, thanks Kevin!

[@AlgoTradingWithKevinDavey]

Never rush is great to do, but also VERY hard...

[@iameladlevi]

Thanks for all Kevin! I’m starting the journey and enjoy every moment you share (NO BS).

[@AlgoTradingWithKevinDavey]

You got this!

[@iameladlevi]

@@AlgoTradingWithKevinDavey Got the gift as well 😀🙏

[@AlgoTradingWithKevinDavey]

@@iameladlevi More chances coming soon

[@mozachi]

The first time I heard the term Forward Test was from Kelvin a few years ago on a private forum, which led me to search more and more about the subject. Thanks for the straight to the point videos!

[@AlgoTradingWithKevinDavey]

You are welcome!

[@OSki-xd8cm]

Cheers Kevin, insightful tip, appreciated and congrats on the anniversary

[@AlgoTradingWithKevinDavey]

Thank You!

[@davorklobucar9364]

patience is key! Thanks for another great video Kevin

[@AlgoTradingWithKevinDavey]

You bet!

[@vpirinski]

Congratulations on your anniversary!

[@AlgoTradingWithKevinDavey]

Thank you!

[@jim_s_777]

Excellent words, Kevin! Waiting is the hardest part ;)

[@AlgoTradingWithKevinDavey]

It really is!

[@sndtrader8141]

Great content and suggestions. Another insight into being a disciplined trader, what almost all beginners of this game lack. Thanks Kevin 👌

[@AlgoTradingWithKevinDavey]

Glad you enjoyed it!

[@T-nt2cq]

Superb. That 6-9 month idea is really interesting.

[@AlgoTradingWithKevinDavey]

Glad you think so!

[@T-nt2cq]

@@AlgoTradingWithKevinDavey With the incubation period, what do you do if its a trend following system and in the 6-9 months there's only been a few trades that were say losers for example? This wouldn't exactly mean the system sucks as that could easily be the case for that type of system. Thanks

[@AlgoTradingWithKevinDavey]

@@T-nt2cq I continue incubation for longer

[@benfishin3040]

Great tip! Thanks Kevin!

[@AlgoTradingWithKevinDavey]

You are welcome!

[@Eric_McBrearty]

Good Stuff.... You should include some links to some of the podcasts you have done in the bio. You first crossed my path via the Chat with Traders Podcast, which I thought was great. "Responding to student emails at 2am when you got up to take a pee." The essence of who Kevin Davey is really seeps out of those interviews. Kudos Kevin!

[@AlgoTradingWithKevinDavey]

Thanks! This page has many of the Podcasts I have been on: kjtradingsystems.com/podcasts.html

[@lawrencequinnell9326]

Thanks! No BS. No Fluff. No hype. It has been beneficial for me to run the back test and optimize on a similar market (one period).Then run the optimized system on a similar market (trending, sideways, chaotic). Does it still work? Then test it in a dissimilar market to identify issues.

[@AlgoTradingWithKevinDavey]

Interesting approach, glad it is working for you!

[@tanvoo]

The strategy factory club is the best!

[@AlgoTradingWithKevinDavey]

You are a big reason why - you have created some really nice strategies!

[@IgorLisx]

Thanks Kevin

[@AlgoTradingWithKevinDavey]

You are welcome!

[@lydiethomas5944]

I like your very conservative approach

[@AlgoTradingWithKevinDavey]

Thanks for being part of the Club!

[@MrSpeleo]

Love your videos - Geat insight, I appreciate you sharing your knowledge.

[@AlgoTradingWithKevinDavey]

Glad you like them!

[@stephenkelly6168]

Awesome!!!

[@AlgoTradingWithKevinDavey]

Thanks!

[@ryanwold2077]

Thanks for the content!

[@AlgoTradingWithKevinDavey]

My pleasure!

[@noahchristian5814]

Only real traders know about Kevin

[@AlgoTradingWithKevinDavey]

Hopefully that is a good thing!

[@noahchristian5814]

@@AlgoTradingWithKevinDavey It is! It takes time in the game for people to really understand the importance of what you teach.

[@AlgoTradingWithKevinDavey]

@@noahchristian5814 - 100% agree. New traders are continually fooled by scammers...

[@MrA1wizard]

Good tip Kevin. However I’ve found that statistical significance is usually a problem for strategies that won’t work in live. In a lot of cases it’s because of not having the right amount of sample size. With enough samples and robust strategy validation, there is no need for incubation

[@AlgoTradingWithKevinDavey]

Thanks for the comment, 92% of my students would disagree that "there is no need for incubation." If your process works for you, that is the key.

[@roystoncartwright5640]

thank you as always Kevin 😊

[@AlgoTradingWithKevinDavey]

You are welcome!

[@GermanMazzaferro]

Gold chains and lambo are not your style Kevin, I really like your safe way of trading. Thank you!

[@AlgoTradingWithKevinDavey]

I just had some American Mazzaferro's over my house last weekend! Cheers to your family!!!

[@FrenchieBenjamin]

Excellent advice & excellent training. Thanks for your mentorship in a field of snake oil salesmen...

[@AlgoTradingWithKevinDavey]

I appreciate that!

[@akolmykov]

thanks for the video

[@AlgoTradingWithKevinDavey]

You're welcome

[@nikkoverquin3283]

Nice video !

[@AlgoTradingWithKevinDavey]

Glad you enjoyed it

[@luckylucket]

You rock, as usual

[@AlgoTradingWithKevinDavey]

Thanks, I appreciate it!

[@user-mr-m12312]

Wating 6 to 9 months is really hard... But since it saves money we should do it

[@AlgoTradingWithKevinDavey]

It is SUPER hard, until you have a pipeline of strategies in the process. Then it is easy.

[@RaulGonzalezG]

Hi Kevin. I was wondering what would be (if any) the disadvantage if instead of an incubation phase I run an Out of Sample test with unseen data (6-9 months or a year). I hope you can share something about this. Regards.

[@AlgoTradingWithKevinDavey]

Most people who use the unseen data as incubation see the results, do not like it, and go back and tweak their strategy again and again until incubation is acceptable. It takes a LOT of discipline to use unseen data properly.

[@Beltrán02-I]

The thing is. You only trade a strategy if during incubation performs well? But what do you mean by performing well? If during the 6 month incubation period the strategy equity curve IS flat with its Up and downs, but It is similar to what the backtest shown, would that be still a great strategy?

[@XDosShane]

It's a very real possiblity that a strategy could move sideways or even go into drawdown during incubation. It's important to note how long has it been in incubation for. If you've only been testing for a month and the results aren't favorable, keep incubating, that's why Kevin suggest 6 to 9 months. As it relates to the strategy being similar to the backtest, the trades have to be aligned as closely as possible. For instance, if the backtest has a trade profiting $200 but the live trade ended up losing $50, then that's a problem. Keep in mind also that the results won't be a perfect match to the backtest. In fact, most times it's less profitable due to a number of things affecting the live trade such as delay in execution.

[@AlgoTradingWithKevinDavey]

Not exactly what I do, but good things to think about!

[@AlgoTradingWithKevinDavey]

If you look at the equity curve, and cannot easily see when inubation started, that is a good indicator.

[@BestTalesforTinyTots]

Please i have a question! if i did the backtest i got X amount of profit during 12 months, and i did go live and on a month the strategy did give me the profit i did expect X/12. with acceptable metrics. should i trust it and go, or i still should wait...

[@AlgoTradingWithKevinDavey]

I personally would not trust a 12 month backtest...

[@BestTalesforTinyTots]

@@AlgoTradingWithKevinDavey okay, thank you !

[@bennybabylon43]

Flash Kevin in bling 😂

[@AlgoTradingWithKevinDavey]

All about the bling!

[@MrA1wizard]

@@AlgoTradingWithKevinDavey😂

[@allanjohns7041]

like would like of the book

[@AlgoTradingWithKevinDavey]

Thanks for the comment, hope you like dthe video!

[@carters6138]

I need book mr davey love from india❤

[@AlgoTradingWithKevinDavey]

Thanks for the comment, check tomorrow's e-mail to see if you won!

[@user-mr-m12312]

1:30 obviously yacht is fake Kevin's yacht is much bigger 😂

[@AlgoTradingWithKevinDavey]

No yacht for me!