Question 1

Why is one chart not enough to prove a strategy works?

Accepted Answer

A single chart is one example out of thousands of possible ones. Random data alone will always contain a few charts where any rule looks perfect, so a good-looking example tells you almost nothing about how the rule behaves over many trades.

Question 2

How many trades do you need before results mean something?

Accepted Answer

There is no single magic number, but a handful of trades is dominated by luck. The point is to gather enough trades, across different conditions, that a real pattern can separate itself from random noise. Ten trades is usually far too few.

Question 3

What is the difference between an example and an edge?

Accepted Answer

An example is one instance where something happened. An edge is a measurable tendency that holds up across a large sample after costs. An idea that only looks good on one cherry-picked chart is an example, not an edge.