When Your Strategy Starts Losing: Three Lines of Adaptive Risk Control
The Problem: Why Did Your Strategy Suddenly Start Losing? A strategy that looked great in backtesting starts losing consistently after going live. It’s not a bug — the market changed. Our small-cap volume surge strategy (based on CEX volume spikes + technical confirmation) was designed as long-only. Simple logic: detect abnormal volume → confirm technically → go long. Backtests looked promising. But after deploying to Testnet, certain tokens kept losing: ...