Learn

Practice Checklist

Use this checklist when reviewing a testnet decision. You are not approving trades manually; you are learning whether the bot is reasoning well.

One-Minute Review

Ask:

1. What did the bot see?
2. What did it own?
3. What action did it choose?
4. Why was that action better than wait?
5. If it waited, why was wait better than action?

Entry Review

For a buy, check:

  • Setup is named.
  • Confirmation is specific.
  • Invalidation is specific.
  • Holding window exists.
  • Exit plan exists.
  • Portfolio has room.
  • Expected move beats costs.

Bad entry explanation:

BTC is down, so buy.

Good entry explanation:

BTC is near support, 1h trend is stable, RSI is oversold, invalidation is a break below support, and exposure allows a small test position.

Hold Review

For a hold, check:

  • Thesis still valid.
  • Risk still acceptable.
  • Timeout has not expired.
  • Profit plan has not triggered.
  • No better use of capital exists.

Bad hold explanation:

Still red, wait until green.

Good hold explanation:

Still above invalidation, trend is intact, and target is not reached.

Sell Review

For a sell or reduce, check:

  • Was this profit-taking, invalidation, risk reduction, or timeout?
  • Did the bot sell a winner too early?
  • Did it cut a loser because the thesis was actually false?
  • Did it preserve cash for a better setup?

Bad sell explanation:

Green now, sell everything.

Good sell explanation:

Take partial profit near resistance and trail the remainder while trend remains strong.

Weekly Review

Once a week, review:

  • Which setup type made money?
  • Which setup type lost money?
  • Did losers get cut when invalidated?
  • Did winners get room to run?
  • Did high exposure block new entries?
  • Did wait decisions avoid bad trades?

Gotcha: The goal of testnet is not to maximize fake PnL. The goal is to prove the bot makes sane, auditable decisions before it touches real funds.