How To Trade

Recognize, own up, and analyze every error is spot-on advice. I log every trade—including losers—in a journal, then backtest my decision process monthly to avoid repeating costly mistakes.

There are many reasons we can use to explain this behavior in trading applications. However, one key understanding is that once our applications have been developed and deployed, their behavior remains fixed and cannot usually be modified without human intervention. This means our strategies are vulnerable to repeating the same mistakes over and over again without ever profiting from failure or learning from past mistakes.

more...