A Trader excitedly went live with a new strategy—only to discover it was taking five times the intended position size! Here’s how it happened, why overconfidence can magnify the fallout, and most importantly, how to build processes that prevent (or at least contain) future mistakes. From naming parameters carefully in your code to flattening rogue trades the moment they crop up, these tips will help keep your system trading on track.
Big Takeaways:
Close Mistakes Immediately: Trying to “fix” or “shrink” a bad fill can lead to bigger errors.
Version Control & Workflow: Proper code management (naming conventions, branching, etc.) is crucial to scaling multiple strategies.
Check Emotional Highs: Feeling too great about your equity curve can be a recipe for disaster.
Paper Trade New Combos: Running combined strategy tests or at least day-one paper trades can reveal hidden bugs.
Even a tiny oversight can balloon into massive headaches. To learn more about systematic trading, avoiding common pitfalls, and refining your processes, check out StatsEdgeTrading.com.