🧧 Follow + comment “168” to claim your fan perks
🧧97. When evaluating a strategy, focus on the harshest extreme periods—not just the most impressive returns during a bull market.
During a one-way rally where everyone is making money, even random trades can generate attractive returns. That proves nothing about whether a model is any good.
A strategy must be repeatedly put through the wringer of historical periods marked by months of grinding declines, extreme consecutive price wicks, and frozen liquidity.
Only when you’ve confirmed that the system can hold the line and avoid liquidation even in the worst conditions does the strategy truly qualify for live trading.
Take the most pessimistic view and run the toughest stress tests. That’s how you can aim for the most optimistic returns in an unpredictable live market.
🧧97. When evaluating a strategy, focus on the harshest extreme periods—not just the most impressive returns during a bull market.
During a one-way rally where everyone is making money, even random trades can generate attractive returns. That proves nothing about whether a model is any good.
A strategy must be repeatedly put through the wringer of historical periods marked by months of grinding declines, extreme consecutive price wicks, and frozen liquidity.
Only when you’ve confirmed that the system can hold the line and avoid liquidation even in the worst conditions does the strategy truly qualify for live trading.
Take the most pessimistic view and run the toughest stress tests. That’s how you can aim for the most optimistic returns in an unpredictable live market.
