Frequenthippo

Dry run methodology

Strategy Dry Run / Forward Test Pipeline

All strategies executed on FrequentHippo follow strict rules to ensure comparability and data integrity.

1. Wallet & Stake Allocation

  • Total starting wallet: $1,000.
  • Each dry run can scale freely within its wallet allocation.
  • DCA strategies: The entire buy sequence counts as a single trade slot.

Historical note: Dry runs prior to 2026 used a $500 max wallet with static stakes (e.g., $500 / 5 slots = $100 per trade). The update to $1,000 aims to streamline comparability with backtests.

2. Strategy Validation

  • Only strategies that pass all validation checks are executed.
  • For details on identifiers and bias detection, refer to the Backtesting Methodology, which covers:
    • Lookahead bias detection
    • Recursive bias adjustment
    • Modular backtests

3. Metrics & Reporting

Dashboards are structured to allow clear comparison:

  • Summary chart: Aggregated performance of all strategies.
  • General overview: Trade counts, cumulative PnL, slot utilization.
  • Detailed pages: Per-strategy execution, DCA behavior, realized profits.

4. Rules for Stopping Runs

  • Drawdown stops: Runs dropping >50% are periodically stopped.
  • Stagnant runs: Runs showing horizontal movement for several months are stopped.
  • Locked positions: Runs that refuse to sell and remain stuck are stopped.

5. Rationale

The purpose of dry runs is to identify strategies with promising forward-test results for live deployment or to determine which strategies require iteration for improvement.

Note on identifiers: If users ask about strategy identifiers, they should consult the Backtesting Methodology, which explains the format, source encoding, exchange, market, timeframe, and max open trades.