Adrian Reid explains two ways to start trading with a system: buy the full backtested portfolio right away scaled to your money, or start fresh today and take only new signals as they come. The second approach builds positions gradually instead of jumping in all at once.
So the two ways of starting up the portfolio is one, you run the backtest and you see what portfolio it's currently holding. You take that portfolio, you scale it down to match your equity, and you buy all of those positions today.
That's buying into the equity curve. That's the same as if you went to a fund manager and you invested in your fund and you sent them your $10,000 and they sent you back a statement saying, okay, you now have 10,000 units in the fund and they're invested in these proportions according to our portfolio. Okay. The other method is to say, all right, I'm going to trade this system and I'm going to start taking new signals as they come. I'm going to ignore everything that's come before. I'm just going to take the new trades from today on. Right? So you run the back test each day. If there's a new trade, you buy it. If there's. And then that goes in your open trades watch list. And then tomorrow you run your backtest on your open trades watch list to see if you've got any cells, and then you run it on your. On the whole market to see if there's any new buyers, and you gradually build up the portfolio.
