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Trading Systems Academy / Module 6 / 42
MODULE 6 · PERFORMANCE, STATISTICS & VALIDATION

Find Out What Actually Failed

The source's 'ideal trade' concept separates process from outcome. A correctly prepared and executed trade may still close at its stop; a profitable trade can still be poorly planned or undisciplined.

ACADEMY #42PERFORMANCE ANALYTICSSYSTEM VALIDATION

Validation principle

This distinction is essential for automated validation. STRATEGY_ERROR means the tested rule set itself produced an unfavorable distribution or failed in the relevant market condition. EXECUTION_ERROR means the software did not implement the intended rule correctly — for example timing, sizing, stop placement or order handling differed from the plan.

ENGINEERING TRANSLATION

Every completed trade should therefore receive both an OUTCOME classification and an EXECUTION_QUALITY classification. That prevents profitable bugs from being mistaken for strategy improvements.

TRADES → R-MULTIPLES → EXPECTANCY → DRAWDOWN → CONTEXT → ERROR CLASSIFICATION → VALIDATION GATE

Connected FX Nova modules

Educational software-engineering material. Source-specific numerical rules are identified as methodology rules; production thresholds require independent testing and sufficient data.

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