🔬 10.1 Strategy Testing and Certification
EOSI Finance’s commitment to quality is realised through a multi‑stage testing framework:
Strategy Submission: developers and pro traders submit their strategies. Each strategy includes details like market focus, entry/exit rules, risk parameters, backtesting results and expected drawdown.
Quantitative Analysis: the strategies as well as AI agents are evaluated, performing backtests across multiple timeframes, historical data and market conditions. They assess metrics such as Sharpe ratio, maximum drawdown, win rate, profit factor and tail risk. The strategy must achieve a minimum winning rate (e.g., 98 %) before progressing.
Stress Testing: strategies undergo stress tests using extreme market scenarios (e.g., flash crashes, prolonged sideways markets, liquidity dry‑ups). This ensures they remain resilient.
Frontrunning Tests: All simulates high‑latency execution and potential front‑running to assess the strategy’s robustness against MEV attacks. Only strategies that pass front‑running tests are approved.
Certification and Induction: approved strategies are deployed to smart contracts and integrated into the copy‑trading or AI‑agent marketplace. The developer or trader becomes part of the pro trader team and can earn profit‑sharing and fees.
Ongoing Monitoring: AI systems monitor deployed strategies. Should performance drop below pre‑defined thresholds or risk patterns deviate, the strategy may be paused or removed for recalibration.
All trading strategies must undergo rigorous backtesting, forward testing and scenario analysis before being approved. Certification committees comprising community members and AI auditors evaluate performance.
However, no amount of testing can eliminate all risks. And all services of EOSI Finance must be used with caution at user's own risk.
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