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📉 The claim, tested

Does it actually step aside?

We say the bot "steps aside when the market turns dangerous". That is a claim about drawdown, and until 2026-09-09 it had no measurement behind it. So we measured it — and we are publishing the half where it does not hold, because a claim you only test where it passes is not a tested claim.

The short version

At 4-hour cadence the claim holds comfortably: 39% drawdown against buy-and-hold's 72%. At 15-minute cadence it fails: 87–100% against 81–97%. The mechanism is the same in both cases — a long-only trend follower is out of the market roughly 57% of the time — but at 15 minutes the trading costs compound the account toward zero, and an account going to zero has a ~100% drawdown however well it steps aside.

Where it holds — 4-hour bars, BNB/USDT

StrategyExitsStrategy drawdownBuy & holdVerdict
BREAKOUT_V1ATR stop39.24%72.49%holds
EMA 12/26ATR stop48.10%72.49%holds
BREAKOUT_V1none58.37%72.49%holds
EMA 12/26none55.49%72.49%holds
TSMOM_V1none66.95%72.49%holds
TSMOM_V1ATR stop84.37%72.49%fails

11 of the 12 configurations tested at this cadence beat buy-and-hold, several by more than 30 points. One does not, and it is in the table.

Where it fails — 15-minute bars

SeriesStrategy drawdownBuy & holdVerdict
BTC / ETH / SOL, all three strategies87.3 – 100.0%81.5 – 96.9%fails, 34 of 36
ADA, LINK at 1 hour90.4 – 99.1%90.5 – 95.5%mostly fails

This is not a different mechanism, it is the same one losing a race against cost. A signal worth about 2 basis points per round trip, traded against a 10 basis point round trip several thousand times, drives the account down regardless of when it chooses to be out.

What this does not say

It does not say the bot makes money — we measured that separately and it does not. On 504 out-of-sample configurations across 56 symbols the same strategies land at the 52nd percentile of random timing: entering at random, with the same exposure and the same costs, earns the same. Avoiding drawdown is a real property. Picking the moment is not a skill we can demonstrate, and we do not claim it.

Method: drawdown is peak-to-trough of the per-bar, net-of-cost account value, so it sees losses inside an open position rather than only at the exit. Buy-and-hold is peak-to-trough of price on the same bars and pays one round trip, so it is cost-advantaged. USDⓈ-M perpetual bars, 2021-01 to 2026-08, Binance public archives, every file checksum-verified. Full write-up and the code that produced it are in our repository: docs/research/exit-trigger-gap-and-drawdown-2026-09-09.md.

If you want the rest of the week that produced this — including the one result we published as a success and then killed ourselves six hours later — the beta record is here.