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Module 01 · Concepts

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.

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.

In this lesson
  • Know the behavior you want to capture
  • Entries and exits are one conversation
Try it — signal crossover

A crossover rule buys when a fast average rises above a slow one and sells when it drops below. Move the fast length and watch the signals — and the whipsaws — change.

Signals
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Buy / Sell
—
Character
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Creator risk reminder

Do not optimize entries before defining exits.

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