Strategy Drift: When to Stop Tweaking
Describe how constantly changing your strategy hurt consistency and how you now decide when a change is justified (minimum sample size, review schedule). Ask how others avoid over-optimizing.
Stopping strategy drift comes down to respecting a fixed sample size and a strict review schedule rather than reacting to a string of losses. Over-optimizing usually happens when traders curve-fit past data, which completely destroys edge when live conditions shift.
To avoid this trap, lock in your parameters, test across a minimum of 50 to 100 trades, and only evaluate modifications during scheduled weekly or monthly reviews.
When trading with prop firms, constantly tinkering with your setup is especially dangerous because it can easily trigger daily loss limits or breach consistency rules. Sticking to a repeatable plan keeps your drawdown controlled and your execution clean. How do you draw the line between a necessary adjustment and over-optimizing? Let us know your review process below!
