Adrian Reid explains why backtesting a strategy on full historical data doesn't prove it works. He recommends running dedicated optimizations, checking result stability, and testing parameters separately for each instrument, since what works for TQQQ may fail elsewhere.
And this is the key, I think, to this whole approach. You have to have the rigorous process. You don't want to just take the system, test it on the entire history of a new instrument. If it works, say, great, I'll trade it. I think you need to go through the rigorous process because the ideal parameters for this universe are probably going to be quite different to the ideal parameters for TQQQ. So we need to run optimization, we need to check the stability, and we need to see if there's any additional filtering required. 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 to get your free Trader Acceleration Bundle to start improving your trading results today.
