Validation method

Stress

Slippage, funding, and cash

Stress raises slippage and funding, then looks at cash.

What this check looks at

Stress makes the fills more expensive. Slippage is raised. Funding is raised. The figure to read after that is cash.

Why cash is the reading

A path can look acceptable until the cost of trading is higher. Raising slippage and funding, then looking at cash, shows whether the cash still holds under that heavier cost. The test stays one book.

How Alphavo runs it

Slippage and funding are raised on the same test, and cash is read from that test. The test is not split into two books. A Candidate Strategy is not Alpha.

How to read the result

Look at cash after the higher slippage and the higher funding. That cash reading sits with the other checks. When a strategy is shown, the star is 0 stars, 1 star, 2 stars, or 3 stars.

Limits

• The stress test is not split into two books.
• Higher slippage and funding on past trades are still a historical reading.