I wish there was a better explanation on what the exact problem was that they were trying to solve. I couldn't understand the problem - if I did I would have proposed my own solution, and then compared to the thinking process proposed to validate if that could've worked better for me, but I can't be bothered to follow the thinking process in the symbols like this without even knowing what we are solving for.
Was it about how to design a profitable algorithm? Was it about how to design the bot? was it about understanding if results from the bot were beneficial?
If that I would just backtest the algorithm to see the profit changes on real historical data?
> Definition: We say that the merchant rate is favorable iff the earnings are non-negative for most sets of typical purchases and sales. r'(t) is favorable iff e(P, S) >= 0.
If I understand the definition correctly, I would say that this is likely even wrong because you could have an algorithm that will be slightly profitable 90% of the time, but the 10% of the time it loses everything.
A correct solution to me is to simulate large numbers of trades based on as realistic data as you can possibly get and then consider the overall sum of the results, not positive vs negative trades ratio.
Was it about how to design a profitable algorithm? Was it about how to design the bot? was it about understanding if results from the bot were beneficial?
If that I would just backtest the algorithm to see the profit changes on real historical data?
> Definition: We say that the merchant rate is favorable iff the earnings are non-negative for most sets of typical purchases and sales. r'(t) is favorable iff e(P, S) >= 0.
If I understand the definition correctly, I would say that this is likely even wrong because you could have an algorithm that will be slightly profitable 90% of the time, but the 10% of the time it loses everything.
A correct solution to me is to simulate large numbers of trades based on as realistic data as you can possibly get and then consider the overall sum of the results, not positive vs negative trades ratio.