Every edge decays eventually. What metrics tell you a bot is failing versus having a normal drawdown? Share your thresholds, such as drawdown multiples of the backtest, and how you decide to pause or retire a system.
Detecting a broken strategy usually comes down to tracking maximum favorable excursion, win-rate degradation, and monitoring when your drawdown exceeds 2x to 2.5x your historical backtested max drawdown. If a bot or manual system breaches its expected statistical variance, it is time to pause and re-evaluate.
In prop firm trading, keeping a close eye on strategy decay is even more critical. Hitting an unexpected drawdown spike can instantly violate strict daily loss limits or trailing thresholds before you even realize the edge has vanished. Always test your automated systems thoroughly under live market conditions.
How are you currently measuring your bot performance thresholds? Share your metrics below!
