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Day Eleven

 Hey everyone,

Just wanted to check in and let you know: I'm still here! Lol. After the sobering, albeit necessary, reality check of my news straddle strategy's recent backtesting performance (or lack thereof!), you might have expected me to throw in the towel. But nope, that's not how we roll on this algo trading journey.

If anything, those clear, undeniable losses have only intensified my resolve. It's frustrating, yes, but it's also incredibly motivating to figure out why it's not working and how to fix it.

Back to the Drawing Board: News Straddle Re-Evaluation

So, my primary focus remains the re-evaluation of my news straddle strategy. As I mentioned, the manual backtesting revealed a painful consistency in hitting stops. This means I need to go deeper than just tweaking parameters. I'm looking at fundamental questions:

  • Are my entry conditions too broad or too precise?
  • Is the 10-pip loss simply too tight for the post-news volatility?
  • Am I missing a crucial filtering mechanism to avoid whipsaws?
  • Perhaps the type of news events I'm targeting needs adjustment.

It's a process of dissecting every single component, analyzing the market behavior around those failed trades, and trying to identify the core weakness. It's challenging, but this deep dive is where the real learning happens.

Learning from the Best: "Six Figure From Scratch" Insights

While I'm wrestling with my own strategy's shortcomings, I've also been dedicating time to learning from those who have walked this path successfully. I've been absolutely glued to the very insightful chapter readings of the "Six Figure From Scratch" book from The Trading Cafe.

You might remember I recently mentioned starting to read the TradingCafe book. Well, these chapter readings are taking it to another level. Hearing the concepts explained, seeing the examples walked through – it's incredibly helpful for cementing complex ideas. It's like having a guided tour through the book, providing additional context and emphasis on the most critical points.

This book seems to offer a practical, no-nonsense approach to building trading systems, which is exactly what I need right now. It's helping me to:

  • Think more systematically: Breaking down strategy development into clear, manageable steps.
  • Identify potential pitfalls: Learning from others' mistakes and avoiding common traps.
  • Develop a more robust framework: Understanding the broader principles of building a reliable trading business, not just a single strategy.

It's a fantastic complement to the hands-on (and sometimes painful!) lessons I'm getting from my own backtesting. The combination of practical application and theoretical learning is truly powerful.

So, the journey continues! My news straddle strategy is currently taking a beating, but my commitment to figuring this out is stronger than ever, especially with these new educational resources lighting the way.

What resources are currently inspiring your trading or algo development journey? Share your recommendations below!

Happy (and persistent) less algo trading, more learning,

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