Last update: August 2021
Hey everyone, I AM BACK!
I just wanted to say that I was really excited to share my story with all of you, but after the incredible feedback I received from everyone, I think I would be able to write a whole book about it! Hehehehe, but don’t worry, I won’t bore you all with too many details.
Like we discussed two weeks ago, the key to my trading was System Development, and this is why I would like to share with you the system that me and my dear Mentor, Tim Justice created together.
Because I have a really hard time dealing with stress, and because I have a severe case of ADHD, we decided to go with something automated. This way, when I place my orders, I don’t have to do anything else after it is placed. My target, my stop loss, everything is set up. I must say, my fellow Tackle Traders, it took me TWO years to get to this conclusion, and I was only able to do so, because of my Mentor. The reason why I’ve been so frustrated with my trades, was because of my lifestyle and my mindset, were not fit for daily trading, or daily hedging. This is where knowing yourself kicks in. Each system is different, which is why you have to find the one that better fits you!
We started by funneling all of the main strategies used out there. After going through one by one, it was clear that Naked Puts, Covered Calls, and Inverted Butterflies were the right choices for me. After we found gold, I had to learn how to mine it. So it was time for *drumroll* BAAAAAAAAACKTESTING! Luckily for all of us Tackle members, our coaches developed an entire backtesting system that you can find, download and use right here: It is called THE TACKLE TRADING JOURNAL
I felt like I had just discovered the wheel, my people. Seriously. For all of you, who just like me, felt insecure about a certain strategy, and how to apply it, I have one thing to tell you: BACKTESTING! There is nothing like it out there. Our coaches did all the hard work of putting the journal together for us, and all we have to do is to find a stock that fits our Strategy’s Criteria, jump onto Thinkorswim, under your Analyze tab > ThinkBack tool, and BAM! It works like magic! You can test your strategy out as many times as you need. This tool inside ToS, allows us to go back in time, get all the data we need, and that’s where the Tackle Trading Journal enters. We take all of that info and place it into the spreadsheet, and it shows us exactly how our trade would have performed if we had placed it. If you would like to know a little more about Backtesting, I Strongly recommend taking a look at these two incredible posts from our great coach Tyler Craig (Backtesting Part I and Part II). That was the key to my performance. Right there. Me, Thinkorswim, and that journal spreadsheet. I backtested the same symbol around 20 times. This way, when you actually put into action what you practiced, you feel secure! Little Brazilian Advice Of The Day: BACKTEST! And one last thing on backtesting: It is not ONLY about executing the strategy properly but also about being comfortable with the results you get out of it. After you see how it works, you become emotionally ready to deal with whatever the market throws at you. You can see all those big wins without feeling like you are about to morph into a hysterical version of My Little Pony, and you will not want to drown yourself in 15 bottles of wine when you have a loss. It is all about knowing your probabilities and understanding that the process is not made of 100% wins. If it were, Wall Street would have NEVER let us even know about trading.
Now, this is especially for the ladies… I am an old soul stuck in a 25’s year old body. I like pen and paper. I am addicted to the dollar section of Target and all of their stationery, so ladies, come out of the darkness and raise your hand if you also cannot see a cute set of pens or a new notebook without going crazy!
I know. I know… I KNOW! So, why not unite the best of two worlds and just plan your trades on paper too? I don’t know if this is just me looking for an excuse to buy even more stationery, or if my ADHD requires seeing the trade explained on paper instead of just into a spreadsheet. All I know is that it works. The moment I have my entire position on paper, all highlighted with beautiful handwriting, I feel so accomplished hahahahaha. So here is a pic of a few of the trades I placed this past month. If you would like to share your stationery trades with us, just use the hashtag #TTStationerytrade with us on Social media for a chance to be highlighted on our platforms!
Thank you all for having me, and stay tuned, because next week we will have our dear Emily taking back the wheel, ready to share more and more with all of us 😀
Tackle Trading Resources on Backtesting
Why backtesting? What are the benefits? How to run backtesting? How to collect and analyze data? What types of trading systems can I backtest? What are the tools available to run backtests?
These and many other questions have been already answered in our extensive pool of articles on backtesting.
Tales of a Technician: Perfecting Your Process Part One
Traders should be process-oriented, not results-oriented.
Tales of a Technician: Perfecting Your Process Part Deux
Today we continue our carefully crafted tale on how to perfect your process.
The Day I Discovered the Wheel: Backtesting
For all of you, who just like me, felt insecure about a certain strategy, and how to apply it, I have one thing to tell you: BACKTESTING!
Options Theory: Baby Got Backtesting Part 1 – Why Backtesting?
I have a confession to make – I never used to backtest, ever. Blame it on my ignorance.
Options Theory: Baby Got Backtesting Part 2 – How to Backtest?
In the first part of our backtesting series, we explored the what and why of the process. Today we get down to brass tacks and talk about how to go about backtesting.
Options Theory: Baby Got Backtesting Part 3 – Backtesting Execution
Welcome to the third and final installment of our series on backtesting. You selected a strategy and systematized it, and now you want to see how it would have performed.
Tackle Today: Back › Forward › Live
Backtest › Forward test › Go Live. The antidote for the risk of ruin.
Friday Feature: The Scouting Reports Backtest Series Part I: Why I started the backtesting
Have you ever wondered how well the Scouting Reports picks actually perform? This is what I am answering with this 3-part series on the Scouting Reports backtesting.
Friday Feature: The Scouting Reports Backtest Series Part II: What I learned from backtesting
Have you ever wondered how well the Scouting Reports picks actually perform? This is what I am answering with this 3-part series on the Scouting Reports backtesting.
Friday Feature: The Scouting Reports Backtest Series Part III: How backtesting shaped my trading
Have you ever wondered how well the Scouting Reports picks actually perform? This is what I am answering with this 3-part series on the Scouting Reports backtesting.
Friday Feature: The Scouting Reports Backtest Series Epilogue
“[…] It all comes down to mindset. Chipper talked about how it takes a strong will to be able to fail 70% of the time and press on, practicing, playing, and striving to be better without the failures weighing down on you.” Trust your system, traders.
Tales of a Technician: Backtesting 50-day Moving Average Signals
Come learn about why the 50-day moving average generates powerful trend reversal signals.
Friday Feature: How the S.T.E.P. System helped me build my rules
I used the information that was in the S.T.E.P. System to refine my trading plan to fit my personality. Continue reading.
Tackle Trading Resources on Journaling
Trading Journals
Good traders keep excellent records. Quality trading journals are essential to your progress and growth as a trader and keeping good records will help you learn more from both your income and expense trades.
Learn more about HOW the Tackle Trading Journals can help you become a professional trader.
Trade Journaling for Beginners [Free Articles]
Continue learning about this powerful trading tool: the Trade Journals. Tackle Trading has all the resources you need to MASTER them like a PRO. From the Trade Journals themselves to free articles and tutorial videos on how to make the most out of them, we got you covered!
How to use the Theta Research Tool to find the best stocks for Cash Flow
In this video tutorial, Coach Matt goes through the latest edition of the Options Research Spreadsheet explaining how to use it to find the best stocks to cash flow.
How to use the Theta Research Journal to find cashflow candidates
In this video tutorial, Coach Tim teaches how to find the best candidates to trade cash flow options strategies using Tackle Trading’s Theta Research Journal.
Tales of a Technician: Journals, Systems and Discretion
Once upon a time I didn’t use a trade journal. Then I got smart.
Trade Journal Series: How to use the Theta Research to find Covered Call candidates
In this video tutorial, Coach Tim Justice teaches how to find the best candidates to trade the Covered Call options strategy using the Theta Research tool.
Trade Journal Series: How to use the Trade Journal
In this video tutorial, Coach Tim Justice will teach you how to use a powerful trading tool: the Trade Journal.
The Day I Discovered the Wheel: Backtesting
For all of you, who just like me, felt insecure about a certain strategy, and how to apply it, I have one thing to tell you: BACKTESTING!
Tackle Today: Organization is Key Part 1 – Trading Business
You might’ve asked yourself at a certain point: “How should I start to make this trading activity a business?”
Tackle Today: Organization is Key Part 3 – Trading Journal
A Trading Journal is not something superfluous. It is crucial. Continue reading.
Notes from a Newbie: The Trade Journal is your friend
The trade journal is your friend, use it!
Options Theory: Size Matters
Do you have consistent position sizing and are you tracking your trade stats? If not, then here’s your invitation to start.
Friday Feature: Habits of a Wealthy Trader – Part 2: Journal Your Trades
You need to treat journaling as a fundamental step in your data and behavior analysis to help you succeed.
Tackle Today: Organization is Key Part 2 – Business routine
Like any other business out there, your trading business must have a routine. Continue reading.
Women in Trading – Journaling
Journaling: I know based on my own experience that it is the most dreaded topic when it comes to trading, yet it is an important part of a trader’s journey.
Financial freedom is a journey
Sign up now and gain unfettered access to all of the quality content and powerful Scouting Reports that our Pro Members enjoy for 15-days absolutely free with no strings attached and let us show you what your trading has been missing.
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5 Replies to “The Day I Discovered the Wheel: Backtesting”
Thanks Emily! Not quite there yet, myself. I’m sticking with basics for now. But, good stuff. And It’s not just a gal thing. I have been doing about the same thing with my paper trades. It is just easier to check myself when it is written down, before entering the trade. But, I use a more manly spiral notebook. LOL.
Thank you Emily! You are on the right track! Thanks for the reminder. I need to backtest more…
Awesome! Love backtesting for those two reasons too, getting a feel for the $wins/losses and win percentages as well as designing position sizing for losing months and losing streaks. Can’t wait to see your colorful trade exit notes!
Great Read!
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