APPLIED QUANTS · EPISODE 2 · TURN YOUR STRATEGY INTO EXACT RULES
Version 2026.11.04

Describe what you do by hand. Replace words such as "strong", "cheap" or "soon" with conditions another person could check.

1. What instruments and market session does this strategy use?

2. What price data and time interval does it need? Which completed observations may a decision use?

3. What exact condition produces an entry signal? Must it cross a threshold, or merely stay above it?

4. When can that signal become a trade? Specify the execution price/time assumption.

5. How much can it buy? Define units, maximum exposure and what happens if there is not enough cash.

6. What exact condition produces an exit? When does the exit execute?

7. How many positions and entries are allowed? What happens to repeated signals?

8. What happens at session end, during missing data, or after a restart?

9. What costs, spread, slippage and fill assumptions will you test?

10. Write three small examples: one that should enter, one that should not, and a boundary case. State the expected answer before asking AI.

11. List unresolved choices. Resolve them before generating code; do not ask AI to quietly invent trading rules.

12. What would make you reject or revise this strategy after testing?

Educational content only, not investment advice. Backtest results are hypothetical and don't predict future results. Trading involves risk of loss.
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