Most strategies don’t fail because the idea is bad.
They fail because:
• No slippage modelling • No position sizing framework • No walk-forward validation • No Monte Carlo stress testing • Over-optimization on historical data • Poor execution architecture • No real-time monitoring layer
A 40% CAGR back test means nothing if:
– The strategy collapses out-of-sample – It can’t handle volatility regime shifts – It breaks during API disconnects – It isn’t deployed reliably – You stop trading after a normal drawdown
Before deploying capital, you should know:
• Expected drawdown distribution • 95% worst-case scenario • Risk of ruin • Capital required for survivability • Sensitivity to slippage and costs
And you should have:
• A stable cloud deployment (VPS/AWS-style setup) • Automated execution via broker APIs • Kill switches & risk caps • Real-time logging • Discord/alert-based monitoring for trade + risk events
If you’re:
– Building rule-based strategies – Looking to automate on NSE – Unsure whether your back test is overfit – Wanting production-grade deployment instead of running scripts on your laptop
