lystn

Hey everyone and welcome back to the daily call. On today’s call, I want to talk about how you can back-test your option strategies in 18 seconds. Now, I know that that sounds crazy you can do it in 18 seconds, but it’s true. You can totally do it in about 18 seconds. Now, the reason that I want to do this is because we haven’t really talked that much or haven’t really promoted that much our back-testing and trade optimization software. Although a lot of people grab that software every single day, I still see people all the time that are making very, very simple mistakes in how they trade because they just don’t know that it’s available. I, for the life of me, cannot figure out why somebody would not want to back-test their option strategy or try to optimize their option strategy before putting hard-earned money at risk. You wouldn’t buy a piece of real estate if you had no knowledge of how real estate worked or real estate prices or real estate valuations. But yet, all the time, I see people trying to enter strategies because they’re trying to save a buck by not getting a piece of software, doing the research, doing the time. It doesn’t always mean like money at a pocket, but it’s actually just like investigating, doing the time, the study work to figure out if that strategy works or if maybe there’s a better variation. Maybe just tweaking one variable can double the return or increase the chance of success or reduce the drawdowns, etcetera. For me, I think it’s a necessity these days to be able to (with the information that’s out there) back-test strategies and see if it’s going to work before you put your hard earned money at risk. Why would you put your money into the market, do a strategy for 30 days, 60 days and then see if it’s going to work three or four years later, see if that strategy consistently is going to work? If you don’t back-test now and trade optimize your strategies now, you’re basically flying a little bit blind in the markets and you’re never going to figure out if you’ve gone the right direction until it’s too late, meaning you’ve lost time. You’ve lost a year or two years of trading to see – “Oh. Maybe that strategy didn’t work. Maybe I should’ve done this slight adjustment.” You can definitely check out our toolbox software at optionalpha.com/toolbox where we give you the ability to back-test hundreds of different strategies (actually, it’s really millions of different strategy variations) as much as you want for as long as you want. It’s all one-time for a lifetime access. Every time we update it every single year, it’s all included and again, it pays for itself in literally like two or three trades that you would’ve otherwise made. I’ve had a lot of people who have emailed me and said, “Kirk, I used to trade X, Y, Z strategy. I back-tested it once and realized that three different tweaks that I can make to it (either closing it a little bit earlier or removing the stop loss or increasing the position size or whatever the case is ) has a dramatic impact on the performance long-term. That’s why we built this because I wanted to know – What are those triggers that could possibly make this a little bit more effective? What are those tweaks that we can make to a strategy when you’re 60 days out versus 30 days out that can make this insanely more effective? Look. I’m definitely pushing this here because I think it’s very valuable for you and I think that the cost associated with this, the true cost associated with this is insanely low compared to the value that you get out of it. Now of course, you never have to use this if you don’t want to. We’ll always give you free content. We’ll always give you free training. That’s never going to change. But if you want to put your money at risk in the market and hope that it works out, by all means, test your luck, see how that works out, come back to me later and let me know how that worked. I do believe though that it’s worth your time and effort because you work so hard for your money and then work so hard to save the additional money on top of that that you should make sure whatever you’re putting your money into actually works. That’s why we built the back-tester because there’s a lot of strategies that don’t work and that’s good. I’ve often got emails from people saying, “Kirk, I’ve run 10 different tests and they all don’t work.” I’m like, “Great! Now, you have 10 different examples of what you shouldn’t do. Keep running tests and see what works and then find something that works. Not everything works and that’s the point. That’s why we built it this way.” Hopefully you guys enjoyed this show. As always, if you guys need anything, let me know and check out the Option Alpha toolbox at optionalpha.com/toolbox. Until next time, happy trading!