Short YouTube transcript where Adrian Reid explains how to start trading a new system by "buying into the equity curve": run a compounding backtest to size positions by available capital, scale open trades to your equity, then manage positions using an unconstrained capital backtest to find sell signals and scan the market for new buys—only entering new trades if spare cash is available.
So when you're buying into the equity curve, you've got to run the compounding backtest, because that will limit the number of positions according to the capital that's available. So run the compounding back test, see what open trades there are, and then scale those open trades down to your amount of equity.
Yeah. And then you manage them ongoing using the unconstrained capital backtest. So you'll. You back test your open trades watch list with that unconstrained backtest to see if there's any sell signals, and then you'll run the back test on the entire market to see if there's any new buy signals. And if you have spare cash, then you can take a new buy signal, but only if you've got spare cash.
Sa.
