You’re trying to improve your trading strategy.
You’ve added columns to your backtest.
You ran an optimization report in the Strategy Cruncher.
And it finds two rules you can apply to your strategy to improve the results.
Here’s a rule it finds for Column A.
Here’s a rule it finds for Column B.
Either rule could be used to improve your strategy, but it should be obvious that one is superior.
It’s no accident. Column A is a normalized data point, while Column B is not.
It’s easy to see on the charts. Column A has a crisp and consistent correlation.
But Column B is… soggy.
The more you compare charts like this, the more ideas you get for improving your trading strategy.
And the better you’ll get at capturing those ideas in your column library.
Over time, your equity curve gets smoother, which gives you a path to increase your position size.
-Dave
