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Line Your Own Pockets
Dave Mabe and Michael Nauss
72 episodes
3 days ago
A weekly show for systematic traders who want to make more money from their trading strategies.
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Investing
Business
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All content for Line Your Own Pockets is the property of Dave Mabe and Michael Nauss and is served directly from their servers with no modification, redirects, or rehosting. The podcast is not affiliated with or endorsed by Podjoint in any way.
A weekly show for systematic traders who want to make more money from their trading strategies.
Show more...
Investing
Business
Episodes (20/72)
Line Your Own Pockets
The ICE Method for Prioritizing Strategies

As traders gain experience, the problem shifts from not having enough ideas to having too many ideas competing for limited time and mental energy. Without a system, this abundance quickly becomes overwhelming and leads to paralysis or procrastination.

We discuss the ICE method - a simple scoring method to determine which ideas to work on first.

Spreadsheet Link https://docs.google.com/spreadsheets/d/1iWG87jZ7KiANQzH9O8KwgtRRl5Wcd60Q/edit?usp=sharing&ouid=112987133391354450813&rtpof=true&sd=true


---

Before you go!

The next time you find yourself in a drawdown, I want you to stop what you're doing and head on over to betterbacktesting.com to sign up for my free backtesting email course.

I hope to see you there!

Show more...
3 days ago
33 minutes

Line Your Own Pockets
How Much Does Speed Matter in Trading?

In this week's episode of Line Your Own Pockets, we take on a topic submitted by Isaac, a trader I work with.

We discuss:

  • When timing/speed matters and when it doesn't
  • The types of trading strategies where latency is likely the bottleneck
  • How rushing to solve problems can be counter-productive (waiting can reveal simpler solutions)
  • Concrete steps to determine if latency is really an issue and how to address it

And much more...


---

Before you go!

The next time you find yourself in a drawdown, I want you to stop what you're doing and head on over to betterbacktesting.com to sign up for my free backtesting email course.

I hope to see you there!

Show more...
1 week ago
39 minutes

Line Your Own Pockets
Portfolio Level Backtesting - Useful or Waste of Time?

We butt heads in this episode, arguing about the value of portfolio-level backtesting, one of the key feature differences between RealTest and Amibroker.

Is portfolio-level testing essential, or simply premature optimization?


---

Before you go!

The next time you find yourself in a drawdown, I want you to stop what you're doing and head on over to betterbacktesting.com to sign up for my free backtesting email course.

I hope to see you there!

Show more...
2 weeks ago
49 minutes

Line Your Own Pockets
How Often Should You Re-Optimize?

We discuss:

  • How to optimize so you have to re-optimize as little as possible
  • How better columns directly translate into more robust strategies
  • Hold a rule "in reserve" so you can apply it when needed without full re-optimization
  • Documenting previous optimization decisions will make the next strategy better
  • And much more...

---

Before you go!

The next time you find yourself in a drawdown, I want you to stop what you're doing and head on over to betterbacktesting.com to sign up for my free backtesting email course.

I hope to see you there!

Show more...
3 weeks ago
41 minutes

Line Your Own Pockets
Is Moving Your Stop To Breakeven a Mistake?

We discuss:

  • Similar to taking partial profits, moving a stop to breakeven is more about psychological comfort
  • Profitable trading requires tolerating discomfort, as difficult as that is at times
  • It seems like a simple idea to test, but it quickly adds significant complexity to a backtest
  • How to actually test this in a backtest

This is a great example of the platitudes you often hear from people who are good at talking about trading, but don't actually trade.


---

Before you go!

If you're a trader and interested in backtesting and automating your trading strategy and don't know where to start, I want you to stop what you're doing and head on over to davemabe.com to sign up for my free backtesting email course.

I hope to see you there!

Show more...
1 month ago
41 minutes

Line Your Own Pockets
Next Steps When Your Strategy Fades
1 month ago
36 minutes

Line Your Own Pockets
You Missed a Trade - Now What?

You didn't get a fill on your original entry.  The trade would have been profitable for a bit, then it comes back to your original entry price.  Do you take the trade?  We go in-depth, answering this common dilemma.

  • Your default should be to take the trade if it still matches your system
  • There's more information to decide on - what can you add to your backtest?
  • What are post-entry columns, and how can they help?
  • How deep thinking about the issue can help you create brand new strategies

Here's the original article Dave wrote on this topic.


---

Before you go!

If you're a trader and interested in backtesting and automating your trading strategy and don't know where to start, I want you to stop what you're doing and head on over to davemabe.com to sign up for my free backtesting email course.

I hope to see you there!

Show more...
1 month ago
41 minutes

Line Your Own Pockets
NASDAQ's Announcement on Tokenization of Stocks

Michael and Dave discuss NASDAQ's initiative to tokenize all securities and the implications for traders. They discuss:

  • What tokenization is and what that means for equities
  • How it affects settlement and paves the way for 24/7 trading
  • Prediction markets and positive externalities of betting ("Betting is a tax on bullsh*t.")
  • Dave proposed a bet to Michael based on the volume traded in the opening and closing crosses in the future

And much more...


---

Before you go!

If you're a trader and interested in backtesting and automating your trading strategy and don't know where to start, I want you to stop what you're doing and head on over to davemabe.com to sign up for my free backtesting email course.

I hope to see you there!

Show more...
1 month ago
50 minutes

Line Your Own Pockets
What To Do When a Strategy Flips
1 month ago
33 minutes

Line Your Own Pockets
Stopped Out by a Penny? Good.

We've got news for you - there's nobody who cares enough about your stops to go "hunting for them."

And getting stopped out by a penny is frustrating, but it's actually a good sign.

  • Blaming an algo or anything else for your trade getting stopped out is counter-productive
  • Why most traders are completely wrong about placing stops
  • How to select stops for your strategy in a data-driven way
  • Much more...



---

Before you go!

If you're a trader and interested in backtesting and automating your trading strategy and don't know where to start, I want you to stop what you're doing and head on over to davemabe.com to sign up for my free backtesting email course.

I hope to see you there!

Show more...
2 months ago
46 minutes

Line Your Own Pockets
Is Trading Gambling?

In this episode, we tackle this popular question. Dave polled several traders he coaches and got some surprising answers.

  • How much is trading like, say, poker, or something that is even more up to chance?
  • Even starting a business can be called gambling if defined purely as "risking money on uncertain outcomes."
  • Does having an edge make trading less like gambling?
  • In a casino, is the house "gambling" because it has a strong edge?

What's your take?


---

Before you go!

If you're a trader and interested in backtesting and automating your trading strategy and don't know where to start, I want you to stop what you're doing and head on over to davemabe.com to sign up for my free backtesting email course.

I hope to see you there!

Show more...
2 months ago
30 minutes

Line Your Own Pockets
Using Alternative Data in a Backtest

In this episode, we discuss the best way to use alternative data in your backtest.

  • What is alternative data and how can you use it in a strategy?
  • Examples of alternative data
  • Using it in real-time versus a backtest
  • How to automate the process for backtesting and real-time trading

Other episodes mentioned: Using News in Your Trading Strategy


---

Before you go!

If you're a trader and interested in backtesting and automating your trading strategy and don't know where to start, I want you to stop what you're doing and head on over to davemabe.com to sign up for my free backtesting email course.

I hope to see you there!

Show more...
2 months ago
41 minutes

Line Your Own Pockets
A Different Way to Go Live

In this episode, Dave discusses a conversation he had with John M. from SMB Trading and his unique approach to taking a strategy live.

We discuss:

  • John's 35+ strategies he runs live
  • How he quickly gets a strategy running in production
  • His approach to collaboration with other traders
  • What is "strategy taste" and how you can improve yours over time

---

Before you go!

If you're a trader and interested in backtesting and automating your trading strategy and don't know where to start, I want you to stop what you're doing and head on over to davemabe.com to sign up for my free backtesting email course.

I hope to see you there!

Show more...
2 months ago
37 minutes

Line Your Own Pockets
Follow Up On Quant/Discretionary Collaboration

Follow-up discussion on quant and discretionary trader collaboration.

We discuss:

  • How Dave first connected with Bella
  • The cultural DNA of SMB Capital
  • The challenges of quant/discretionary collaboration
  • The importance of being a giver, not a taker


Related episode:
Mike Bellafiore and Nick Coutrakon from SMB Capital on Trading Teams
Creating a Trusted Trading Group

Books mentioned:
Give and Take by Adam Grant|
The Go-Giver by Bob Burg and John David Mann


---

Before you go!

If you're a trader and interested in backtesting and automating your trading strategy and don't know where to start, I want you to stop what you're doing and head on over to davemabe.com to sign up for my free backtesting email course.

I hope to see you there!

Show more...
3 months ago
43 minutes

Line Your Own Pockets
Mike Bellafiore and Nick Coutrakon from SMB Capital on Trading Teams

Mike Bellafiore and Nick Coutrakon join the podcast to continue a discussion Mike had with Dave on the makeup of trading teams at SMB Capital, a proprietary trading firm in NYC.

What's the best way to include a quantitative trader in a discretionary trading team?

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3 months ago
51 minutes

Line Your Own Pockets
Baby Steps Towards Automating Your Trades

Are you a profitable trader but hesitant to automate your trades?

In this episode, we discuss multiple steps to take towards having a computer make trades without fully automating.

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3 months ago
43 minutes

Line Your Own Pockets
Which Version of This Strategy Is Best?

We discuss 4 different variations of a strategy that Dave is deciding between and the thought process for doing so.

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3 months ago
43 minutes

Line Your Own Pockets
Choosing a Trading Computer

Lessons learned from buying a new trading computer.

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4 months ago
36 minutes

Line Your Own Pockets
How to Trade When Traveling

Remote desktop solution mentioned:
RustDesk
TailScale

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4 months ago
49 minutes

Line Your Own Pockets
Running Out of Buying Power - Part 2

More discussion on buying power and running out of it might be a good thing.

Show more...
4 months ago
43 minutes

Line Your Own Pockets
A weekly show for systematic traders who want to make more money from their trading strategies.