WEEK 12 · LESSON 17 · TOPIC 5 OF 6 · Trade-Offs and Limitations

Trade-Offs and Limitations

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  1. Overview

Overview

The system does not remove strategy risk. A strategy can perform poorly even when the execution is technically correct. Disclosure data can arrive after the original trade, so the copied result can differ materially from the tracked result.

A self-improvement loop can refine how Hermes interprets and executes the chosen procedure, but it cannot make an unprofitable strategy profitable by definition. Real-money access also changes the risk level substantially. The paper-trading setup uses simulation as the starting state and treats live execution as a separate decision.