Two lab members built this system

backtesting fvbo strategy systems trading Feb 15, 2021

I've been sending a bunch of emails this past week for Black Friday and Cyber Monday, yes we have a 50% discount and yes I'm going to pitch it....again!

But first let me provide you some value!

I wanted to share the work that two traders in the Trading Lab and alumni of the Systems Mastery course have collaborated on. 

The reason I teach the FVBO strategy is because it is a very high win rate strategy. That's easy. But one of the other reasons I teach it is that it teaches people how to trade mean reversion strategies. 

Mean reversions are breakouts that FAIL. 

This happens about 80% of the time, so markets actually breakout only 20% of the time. But most traders are always trading breakouts, which is a big reason why so many traders fail. 

It's very difficult to be wrong 80% of the time. That's 8 failed breakouts, by the time you get to trade number 9 you are fatigued, discouraged, lost a bunch of money and it's hard to stay optimistic. 

On the other hand, trading a failed breakout strategy you can be on the right side of that 80/20 ratio. But by simply flipping to a mean reversion/failed breakout strategy you won't be instantly successful. 

Another big part of it is understanding the characteristics of the market regime, the trade setups and what a market will likely do, so that you can be in the right position to take advantage of it. 

This is where backtesting comes in to play. 

Having an idea, having the 80/20 edge and all of that is helpful for sure, but without doing the work, it's still just guessing. 

This is why manual backtests are so important to building and trading a successful strategy. 

These two traders I mentioned earlier have taken the skills they learned in the Systems Mastery Course to build their own strategy based off of the foundation they got from their work manually backtesting FVBO/VBO/VBO2.0

You see, the FVBO (et al) aren't the be all end all, they are the foundation to building up a knowledge base and the skills to be a trader...not a guesser of markets. 

Once you have these skills you can adjust and do your own work. 

Here's the results of their work

They are still testing and building their system, but things are looking great so far. 

This is an End of Day system that they build to beat the tryout requirements of multiple Prop Firms. These prop firms have strict requirements that they lay out and tell you ahead of time. 

This is the type of results you should expect from putting in the work, manually backtesting, learning foundations, putting in the practice, collaborating with others on the right thing instead of chasing fancy watch lists or high volatility stocks. 

You should expect to be self sufficient and successful at trading. 

Later today I will be sharing a video from a portion of todays live stream where we go into further detail about this and also go down the rabbit hole of WHEN TO EXIT a trade :)

Remember today is Cyber Monday and all courses are 50% off

Or we are giving months away to the lab

Check out the deals, they end later tonight!


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