Quant / Trading2 min readDraft

Pre-registration for trading: how I keep from fooling myself

The single practice that changed my paper-trading experiments: writing the kill/keep rule down before the data comes in. Gates decided in advance can't be moved to fit a story.

#trading#methodology#pre-registration#paper-trading
Placeholder for pre-registration methodology
Placeholder — real chart pending from the bot's own report output.

Paper-only experiments. Numbers here are generalized; the exact figures come from each bot's own report output, and charts will be added from those reports (never fabricated).

The easiest person to fool with a trading strategy is yourself, after the fact. Pre-registration is how I stopped.

The idea

Before an experiment collects data, I write down the decision rule: the sample size that counts, the metric, and the threshold that means kill or keep. Once that's committed, the data can't be reinterpreted to fit what I wish had happened. A losing run I "decide" to keep because it "should" work is exactly the failure the pre-registered gate prevents.

What a gate looks like

Concretely, for a paper bot I pre-register things like:

  • A minimum sample size before the main gate even evaluates (below it, the verdict is INSUFFICIENT, not "looks promising").
  • A kill threshold on cumulative PnL, decided in advance.
  • For an early-close variant, a separate gate: a minimum count and a confidence-interval lower bound above zero before I'll adopt it.

The point of writing the numbers first is that when a bad day arrives, I'm reading the gate, not negotiating with it.

Gate evaluation output from the bot's daily report Placeholder — real chart pending, sourced from the bot's report output (paper).

The honest part

Every discretionary "let me give it a few more days" is a small edit to the experiment after seeing the result — and those edits are where overfitting to your own hopes lives. Pre-registration doesn't make a bad strategy good; it makes you notice it's bad on schedule, instead of explaining the losses away one day at a time. The discipline is boring and it's the whole point: decide the rule when you have nothing invested in the answer, then obey the rule when you do.

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