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Section S · Sharpening · Paid

S6. Bend the Coin

test any pattern against dumb luck

What this does

Teaches the single most protective idea in quantitative trading — the null test — and walks you through designing one for a pattern you believe in: what would this number look like if my trigger meant NOTHING?

What to expect back

You come away with a number for the bend — and either genuine respect for a pattern that beat it, or a graceful funeral for one that didn't. Both are wins.

Works with

No tools. This one is pure thinking, and works before you connect anything.

"It works 65% of the time" is meaningless until you know the base rate. In a rising market, buying after ANY event "works" most of the time — the coin is bent before you flip it. Professionals measure the bend first; this prompt makes that habit yours.

The prompt

next: s8-the-evidence-ledger

S · Sharpening