Ran three independent strategies. Turns out they weren't.
u/Thiru_7223 ·
Reddit — r/algotrading
· June 23, 2026 at 09:29
· ⬆ 15 pts
· 💬 14 comments
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AI Summary
Summary
The author built three seemingly independent strategies on different timeframes and pairs, but discovered they all drew down on the same days, indicating hidden correlation via volatility regime.
Thesis: Different entry logic does not guarantee diversification if strategies react to the same underlying risk factors; the portfolio was effectively a single concentrated bet.
Quality assessment: A reflective, anecdotal insight about risk management and hidden correlation, not a research-driven trade thesis. It is valid cautionary advice but not actionable DD.
Score15
Comments14
Upvote %89%
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Built three separate systems over the past few months different timeframes, different logic, different pairs. Felt diversified. Sized each one like it was uncorrelated risk.Pulled the equity curves side by side last week out of curiosity. All three drew down on the same three days. Every time.Different entry logic doesn't mean different risk exposure if they're all reacting to the same underlying volatility regime. I'd basically built one strategy wearing three costumes and sized it like it was three.
Still figuring out how to actually test for this before going live instead of after. Anyone else discover their diversified book was secretly one big bet?