Milestone map
Milestone map
3 milestones
Write the rules first
1 week
Write a simple, rules-based strategy down before testing it — entry, exit, position size and rebalance timing. Rules written first stop you from fitting the past.
Proof required
Submit the dated strategy rules and the data you will test on (source, assets, dates).
What gets checked
- Every rule is exact, not 'buy when it looks cheap'
- Dated before testing
- Asset list avoids survivorship bias or says so
Common mistakes
- Vague rules
- Rules edited after seeing results
- Testing only today's winners
Powstik Guide
Exact, dated strategy rules.
Steps
- Write entry, exit and sizing rules.
- Set the rebalance schedule.
- Pick the asset universe.
- Note survivorship risk.
- Date the rules.
Template
Entry: Exit: Size: Rebalance: Universe: Date written:
What gets sent back
- Subjective rules.
- Undated rules.
- Hand-picked winners.
Resources
Foundationstart here
What a verifier looks for
- Checked by the verifiers you invite to your panel (up to 3). Pick people who can judge the work, not friends.
- Check each rule could be coded exactly
- Ask how the asset list was chosen
You'll sign in first, then come straight back here.
Backtest with real costs
2–3 weeks
Code the backtest with no look-ahead, include trading costs, and use walk-forward testing. Report return, volatility, Sharpe ratio and maximum drawdown.
Proof required
Submit the backtest code and a results table with and without costs, including Sharpe and max drawdown.
What gets checked
- Signals use only past data
- Costs included
- Drawdown reported, not just return
Common mistakes
- Using same-day close to trade at that close
- Zero costs
- Only showing total return
Powstik Guide
An honest backtest with costs.
Steps
- Lag signals by one period.
- Add a cost per trade.
- Walk forward through time.
- Compute Sharpe and max drawdown.
- Compare to buy-and-hold.
Template
Metric | no costs | with costs | buy-and-hold Return Volatility Sharpe Max drawdown
What gets sent back
- Look-ahead in signals.
- No costs.
- No drawdown.
Resources
Foundationstart here
Depthgo deeper
What a verifier looks for
- Checked by the verifiers you invite to your panel (up to 3). Pick people who can judge the work, not friends.
- Check for look-ahead in the signal
- Compare with and without costs
You'll sign in first, then come straight back here.
Stress it and defend it
1–2 weeks
Test the strategy on a period and assets you left out, and change one parameter to see if results hold. Defend it live to a reviewer.
Proof required
Submit results on the held-out period, a parameter sensitivity table, and the review log.
What gets checked
- Held-out period shown even if worse
- Results don't hinge on one lucky parameter
- Reviewer questions answered
Common mistakes
- Hiding the held-out result
- Tuning until it works
- No sensitivity check
Powstik Guide
A strategy tested where it wasn't tuned.
Steps
- Run on the held-out period.
- Vary one parameter ±50%.
- Tabulate results.
- Present to a reviewer.
- Log the challenges.
Template
Review session log Date: Duration: Reviewer name: Reviewer role and experience: Challenge 1 (strategy robustness): What they asked: My answer: Challenge 2: What they asked: My answer: Change I made after the session:
What gets sent back
- No held-out test.
- No sensitivity table.
- No review.
Resources
Foundationstart here
Depthgo deeper
What a verifier looks for
- Checked by the verifiers you invite to your panel (up to 3). Pick people who can judge the work, not friends.
- Pick a parameter to change
- Ask why the edge should last
You'll sign in first, then come straight back here.
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