Strategy Lab - FAQ
This FAQ answers common questions about using and interpreting the Strategy Lab.
Simulate is used before running a strategy, to validate safety, sizing, and signal behavior, and does not affect live trading. Evaluate and Rebalance work on strategies that are already running.
What is the Strategy Lab for?
Section titled “What is the Strategy Lab for?”The Strategy Lab is a strategy research and stress-testing environment.
It answers questions like:
- Can this strategy survive worst-case accumulation?
- How much capital pressure does it create?
- Are BUY or SELL signals poorly balanced?
- Which sigma adjustment actually improves safety?
It is designed for analysis and design, not execution.
Does the simulation place real orders?
Section titled “Does the simulation place real orders?”No.
A simulation:
- Does not place orders on your exchange
- Does not modify strategies
- Does not reserve capital
- Does not affect live Aurono behavior
All simulation runs client-side on historical data only. The Evaluate and Rebalance tabs are different: their actions (pause, edit, archive, capital transfers) change your real strategies.
Why does the simulation show ignored BUY triggers?
Section titled “Why does the simulation show ignored BUY triggers?”Because not every BUY signal can or should execute.
Common reasons:
- Capital is temporarily tied up in inventory
- BUY signals cluster during drawdowns
- Execution would exceed allocated capital
Ignored BUY triggers do not automatically indicate a broken strategy.
Why are BUY triggers ignored when capital is “sufficient”?
Section titled “Why are BUY triggers ignored when capital is “sufficient”?”A BUY trigger being ignored does not mean Aurono is malfunctioning. There are two valid reasons:
1. Insufficient capital (true capital shortage)
Section titled “1. Insufficient capital (true capital shortage)”This occurs when allocated EUR is less than theoretical EUR required.
Result:
- Some BUY triggers cannot be executed
- Strategy is underfunded
- Capital safety warning is shown
Fix: Increase allocated EUR or raise BUY sigma.
2. Signal clustering (capital is sufficient)
Section titled “2. Signal clustering (capital is sufficient)”This occurs when:
- Many BUY signals happen close together
- EUR is temporarily exhausted
- Capital is theoretically sufficient overall
Result:
- Some BUY triggers are skipped
- No capital safety violation
Fix: Increase BUY sigma to reduce clustering.
Why this is not a bug
Section titled “Why this is not a bug”Aurono executes in real time. If signals arrive faster than capital can recycle, it waits. This protects you from over-leveraging, emotional averaging down, and hidden borrowing.
Why are SELL triggers ignored?
Section titled “Why are SELL triggers ignored?”SELL triggers can be ignored for three fundamentally different reasons:
ACB protection
Section titled “ACB protection”Aurono never sells below the Average Cost Basis (ACB), plus a small margin covering the round-trip exchange fee. If the sell price does not clear that floor, the SELL trigger is ignored. This is intentional loss protection, not a missed opportunity.
No inventory
Section titled “No inventory”This occurs when SELL signals happen before sufficient BUY accumulation. This indicates SELL sigma may be too low or profit expectations are premature.
Fix: Increase SELL sigma.
RSI did not confirm
Section titled “RSI did not confirm”Only applies when RSI confirmation is configured. The rise threshold was met, but RSI was below your sell floor, so momentum did not back the move. Checked before inventory and ACB, so an RSI-blocked sell never reports either of those.
Fix: Lower the sell floor, or remove the RSI condition if it is throttling more than it filters.
Interpreting the distinction
Section titled “Interpreting the distinction”- Mostly ACB-blocked - strategy not yet in profit
- Mostly no-inventory - premature SELL thresholds
- Mostly RSI-blocked - momentum rarely agrees with your price trigger on this asset
The Simulate tab explicitly reports this distinction.
What is the difference between BUY streaks and max net buy saldo?
Section titled “What is the difference between BUY streaks and max net buy saldo?”They measure different things.
-
BUY streak The longest sequence of consecutive BUY signals without a SELL in between. This reflects short-term clustering.
-
Max net buy saldo The maximum number of BUYs minus SELLs accumulated over the entire period. This reflects worst-case capital pressure.
Only max net buy saldo determines theoretical capital requirements.
Why is max net buy saldo more important than streaks?
Section titled “Why is max net buy saldo more important than streaks?”Because:
- Capital is consumed by executed BUYs
- Capital is released only by executed SELLs
- Long-term imbalance matters more than short bursts
A short BUY streak may be harmless. A large net saldo will require capital.
Why does the Strategy Lab separate “below ACB” and “no inventory” SELLs?
Section titled “Why does the Strategy Lab separate “below ACB” and “no inventory” SELLs?”Because they indicate different design issues:
- Many SELLs below ACB - strategy is not yet profitable
- Many SELLs with no inventory - SELL sigma may be too low
The distinction helps you tune the correct parameter.
Why does the Strategy Lab recommend changing sigma instead of adding capital?
Section titled “Why does the Strategy Lab recommend changing sigma instead of adding capital?”Because sigma changes:
- Signal frequency
- Accumulation speed
- Stress on capital
Adding capital treats the symptom. Adjusting sigma fixes the structure.
Aurono prioritizes structural safety over brute force funding.
Why does increasing BUY sigma reduce capital pressure?
Section titled “Why does increasing BUY sigma reduce capital pressure?”Higher BUY sigma:
- Requires deeper drops
- Produces fewer BUY signals
- Reduces long-term accumulation
This directly lowers worst-case EUR exposure.
Why does increasing SELL sigma reduce inventory exhaustion?
Section titled “Why does increasing SELL sigma reduce inventory exhaustion?”Higher SELL sigma:
- Waits for stronger upward moves
- Reduces premature SELL signals
- Aligns SELLs with actual profitability
This improves execution consistency.
Why does the simulation assume worst-case conditions?
Section titled “Why does the simulation assume worst-case conditions?”Because Aurono is designed to survive:
- Extended drawdowns
- Adverse signal ordering
- Unfavorable market phases
The simulation assumes nothing goes right by luck.
If a strategy survives this, it is structurally safe.
Does the simulation predict performance or profits?
Section titled “Does the simulation predict performance or profits?”No.
The Strategy Lab:
- Does not predict returns
- Does not optimize profit
- Does not rank strategies
It evaluates safety, balance, and feasibility only.
How does the simulation relate to live trading?
Section titled “How does the simulation relate to live trading?”The Strategy Lab mirrors Aurono’s decision logic, not market timing.
What is identical
Section titled “What is identical”- Trigger thresholds
- Capital checks
- ACB protection
- Inventory rules
What can differ live
Section titled “What can differ live”- Exchange latency
- Fee rounding
- Candle alignment timing
If a trade is skipped in the simulation, it will also be skipped live - by design.
The simulation gives you confidence, not guarantees.
Why do simulation results differ from live behavior?
Section titled “Why do simulation results differ from live behavior?”Because:
- Simulation assumes deterministic execution
- Live markets include liquidity, timing, and exchange constraints
- Aurono executes only at candle close
Differences are expected and normal.
Should I optimize for zero ignored triggers?
Section titled “Should I optimize for zero ignored triggers?”No.
A healthy strategy may:
- Ignore BUYs during clustering
- Ignore SELLs below ACB
- Skip signals during imbalance
Zero ignored triggers is not the goal. Structural safety is.
When should I re-run the simulation?
Section titled “When should I re-run the simulation?”Run it when you change:
- BUY or SELL sigma
- BUY or SELL amount
- Allocated capital
- Timeframe
- Exchange or symbol
If strategy inputs change, re-run the simulation.
Key Takeaway
Section titled “Key Takeaway”The Strategy Lab does not answer:
“Will this make money?”
It answers:
“Can this strategy survive its own rules?”
That is its purpose - and its strength.