Here is a summary of the video found at the link below:
This video is about a technique to reduce losing months in trading. The speaker, Thomas Nal, a professional breakout trading specialist, introduces the idea of filtering out days of the week that produce a lot of false entries. He claims that this technique can significantly reduce the number of losing months without sacrificing too much profit.
The speaker doesn't explain the specific breakout trading strategy he uses but focuses on filtering out bad days. Here's how the filtering works:
Identify the day of the week that produces the worst results. The speaker suggests looking at the equity curve to see which day has the most drawdowns.
Remove that day from the trading strategy. This will eliminate trades on that day and avoid potential losses.
The speaker acknowledges that this technique is not perfect and there will be some sacrifice in terms of potential profits. However, he believes that the reduction in losing months outweighs the potential loss in profits.
In the video, the speaker uses Tuesdays as an example of a bad day to remove. He shows that removing Tuesdays from the strategy significantly improves the equity curve by reducing a large losing streak.
The speaker also mentions that this technique is based on the concept of the "Twisted Dow" which isolates the best trading days of the week. However, he argues that the Twisted Dow is not as effective as it used to be and recommends his filtering technique as a more advanced solution.