The Importance of Trade Frequency in Strategy Testing
A trading strategy that produces only two setups per month behaves differently from one that produces ten setups every day.
Trade frequency affects:
1. How quickly you collect performance data.
2. Transaction costs.
3. Emotional pressure.
4. Exposure to different market conditions.
5. Your ability to execute consistently.
A low-frequency strategy is not necessarily better than a high-frequency strategy.
Key takeaway: Choose a strategy whose frequency matches your lifestyle and execution ability.
How many quality setups does your strategy generate per week?
