I ran into three pitfalls while building my first quantitative system.
Pitfall 1: Overfitting
The backtest looked unbelievably good, but the system fell apart as soon as it went live.
The reason: the parameters were tuned too closely to historical data.
Pitfall 2: Ignoring fees
Each trade made $50 in the backtest, but after fees, only $15 was left in live trading.
Returns were cut by 70% outright.
Pitfall 3: No stop-loss logic
“The quantitative system won’t make reckless trades.”
Then one market move wiped out 20%, and I learned that quant strategies can get liquidated too.
The SYS series was built gradually, after running into these three pitfalls.
Without pitfalls, there would be no system.
#TradingView #量化交易 #CryptoTrading
$BTC $XAUT $HYPE
Pitfall 1: Overfitting
The backtest looked unbelievably good, but the system fell apart as soon as it went live.
The reason: the parameters were tuned too closely to historical data.
Pitfall 2: Ignoring fees
Each trade made $50 in the backtest, but after fees, only $15 was left in live trading.
Returns were cut by 70% outright.
Pitfall 3: No stop-loss logic
“The quantitative system won’t make reckless trades.”
Then one market move wiped out 20%, and I learned that quant strategies can get liquidated too.
The SYS series was built gradually, after running into these three pitfalls.
Without pitfalls, there would be no system.
#TradingView #量化交易 #CryptoTrading
$BTC $XAUT $HYPE