5 Stop-Loss Pitfalls That Kill Quant Strategies — And How to Fix Them
The Silent Killer of Trading Bots Last month, a Chinese quant developer known as 可乐AI实验室 ran a live experiment: a 50 USDT account running what he called the “Star Strategy.” The bot went on an absolute tear — nearly 50% profit in a single day. He went to sleep. Woke up. Every cent of profit was gone. Why? The stop-loss logic collapsed overnight. This isn’t a “beginner mistake.” It’s the default outcome for most quant systems. After spending a month building a production trading engine, 可乐 discovered that introducing leverage or short-selling into his system reliably destroyed returns. The simpler the system, the better it performed. The more “sophisticated” the risk management, the closer it got to zero. ...