Strategy Framework

A standardized system for defining, documenting, testing, and managing trading strategies. This skill provides templates and tools that enforce discipline, enable reproducibility, and make strategies testable.

Why a Strategy Framework Matters

Trading without a written strategy framework leads to:

• Inconsistency: ad-hoc decisions driven by emotion rather than rules
• Untestability: vague ideas that cannot be backtested or evaluated
• Scope creep: strategies that drift without version-controlled definitions
• Unmanaged risk: missing stop losses, position limits, or drawdown halts

A strategy framework forces you to:

1. State a falsifiable hypothesis about a market inefficiency
2. Define precise, machine-testable entry and exit rules
3. Specify position sizing and risk parameters before trading
4. Set minimum performance criteria for continuation or retirement
5. Track changes through versioned strategy documents