I scored all 5 of my algo bots on a 5-dimension scorecard this week.
The bot with the worst per-trade edge scored highest overall.
The bot with the BEST per-trade edge scored lowest.
Here's the framework and why it matters 🧵
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The scorecard in one formula:
Strategy Value = Edge × Frequency × Capacity × (1 - Correlation) × (1 - Fragility)
Zero in any term = zero value.
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BTC funding rates just hit their most negative since 2023.
46 consecutive days negative on Binance perps. Open interest climbing. Price grinding from $60K to $75K. $200M in shorts facing liquidation above $75.5K.
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Same bot. Same formula. DSR went from 0.00 to 0.999 — just by feeding it the right data with the right trial count.
The distinction matters: backtested Sharpe with parameter optimization will almost always fail DSR. That doesn't mean the edge isn't real.
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