A strategy can show a strong Sharpe ratio and still be far less stable than it appears.

Why?

Because the calculation usually treats every return observation as equally informative.

But crypto markets often move through clusters.

Ten profitable days during the same momentum regime may not represent ten independent pieces of evidence.

They may represent one market condition repeated ten times.

This matters because statistical confidence can become overstated when observations share the same underlying driver.

Instead of counting only trades or profitable days, examine how many genuinely different regimes produced the returns.

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Then stress-test performance across volatility, liquidity, trend, and risk-off environments.

A thousand trades do not necessarily provide a thousand pieces of evidence.

Sample size measures how much data you collected.

Independent evidence measures how much you actually learned.

In markets, that difference can separate apparent robustness from real robustness.