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