The Backtest Looked Amazing. It Was Lying.
My momentum bot showed incredible returns in backtests. Then I learned about overfitting — the hard way.
Lessons
10 Trading Bot Mistakes Every Beginner Makes (I Made All of Them)
I’ve built 6 trading bots and made every mistake possible. Here are the 10 most expensive ones so you don’t have to repeat them.
Backtest vs Reality: Where Dreams Go to Die
My bot showed +500U in backtests. Live trading showed +200U. Here’s every gap I found and how I closed them.
Stop Loss: The Most Important Feature You'll Get Wrong
I went from market order SL to exchange-side STOP_LIMIT and it changed everything. Here’s every mistake along the way.
Risk-Reward Ratio: The Only Number That Matters
Forget win rate. A 35% win rate can make you rich. A 70% win rate can bankrupt you. Here’s the math.
Parameter Optimization Without Fooling Yourself
Grid search found parameters that turned -82U into +343U. Here’s how I made sure it wasn’t just overfitting.
Leverage: The Double-Edged Sword (Why I Use 3x)
Binance offers up to 125x leverage. I use 3x. Here’s the math behind that boring decision.