On this week’s episode of Line Your Own Pockets, we discuss whether to disable trading strategies on days when the overall market is raging.
We’re not talking about run-of-the-mill market movement – we mean the outlier days that, by definition, happen rarely.
Whether you should turn off your strategies depends on how you designed them to begin with.
A perfectly acceptable answer might be to simply turn off your strategies on these days, but you risk potentially missing out on the most profitable days your strategy could experience.
What’s the right way to think about it?
-Dave
P.S. Do you use RealTest for backtesting? I’m testing something that’s particularly valuable for RealTest users. If you’re interested in helping beta test it, hit reply and let me know.
