Adrian Reid explains how professional traders respond when a rule they've tested and optimized fails in real trading. When out-of-sample results don't match the backtest, the answer is simple: discard it and move on. Failure means nothing except that the rule doesn't work.
We brainstormed some improvement ideas, we've optimized it, we've tested it in sample, we've checked the robustness. I also checked the significance of each rule. I didn't show you that. And then we tested it out of sample and it failed. What does it mean? Move on. Move on. Exactly right. Doesn't mean anything other than move on. It just means move on. I couldn't have put that better myself. Thank you, Matthew. So it's disappointing, but it's a process. If you want more trading tips from Enlightened Stock Trading, make sure you give this video a like and follow Enlightened Stock Trading so you don't miss the next video. And go to enlightenedstocktrading.com/subscribe /free to get your free Trader Acceleration Bundle to start improving your trading results today.
