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Basics

Three parts of a strategy that must agree with each other

Most fragile bots fail because one component was designed in isolation from the others.

Concepts Core question: Why should this rule work? Output: Testable strategy spec Screen: Strategy Creator
Key Takeaways What to take from this lesson
Know the behavior you want to capture Entries and exits are one conversation
Risk Frame Creator risk reminder
  • Do not optimize entries before defining exits.
  • Do not increase size to compensate for weak edge quality.
  • Do not stack filters until the original idea disappears.
Edge

Know the behavior you want to capture

Trend-following, pullback continuation, breakout confirmation, and reversion all require different expectations about holding time and failure rate.

Execution

Entries and exits are one conversation

A precise entry with a vague exit is still vague. The path out of the trade must be just as specific as the reason to enter it.

Capital

Sizing changes the strategy itself

A sound signal can become a bad system if the position sizing creates unacceptable volatility, concentration, or correlated risk across bots.