318 · Dave Mabe - The Shift to Systematic Trading — Building Backtested Confidence

The podcast explores the transition from discretionary trading to automated, systematic approaches, highlighting the experiences of Dave Mabe, a trader with over two decades of experience. Mabe details his journey from swing trading to day trading, eventually developing a rule-based gap and breakout strategy. A turning point came when backtesting revealed that a systematic version of his strategy outperformed his discretionary trading, leading him to embrace automation. Mabe emphasizes the emotional challenges in automated trading, particularly during drawdowns, and stresses the importance of pre-planned risk management. He also shares insights on backtesting, cautioning against over-optimization and advocating for a balance between simulation and live trading to build confidence.