I’m going to do something a little different this week. Instead of a single email on Wednesday, I will send an email each day about a single topic: curve fitting.
In all my interactions with traders, I think there’s no more misunderstood topic than curve fitting.
I’ve seen traders freeze up and not take action due to a fear of curve fitting.
Some traders bypass ways to improve their trading strategy that would clearly make them more money because they “fear it might be curve fitting.”
And yet other traders do quite well by seemingly ignoring the topic altogether.
What’s the right way for traders to think about curve fitting? That’s what I want to explore in this series.
First – a question.
Have you ever lost money in your own trading due to a decision you eventually concluded was curve fitting?
Hit reply and let me know – I’m genuinely curious.
-Dave
P.S. When I started this newsletter, I wondered if I would have enough topics to write about. I quickly realized that was the least of my concerns. I keep a list of topics in Notion so I don’t forget them. There are over 300 ideas on the list and counting!
I realize now I’ll never get to all of them if I don’t write more frequently, hence this experiment.
