Include Fees and Slippage — Profits May Disappear
I noticed you omitted transaction fees — I believe those meaningfully cut into returns, especially for frequent trades.
I also pointed out you assumed buying and selling at the same price, which ignores slippage and normal coin price fluctuation.
I recommend re-running the calculation with realistic fees, spreads, and execution prices before trusting the results.
Analysis
By excluding trading fees and assuming execution at the same price, the original model likely overstates profitability; realistic backtests must account for fees, spreads and price movement.
Recommendation
Update the model to include explicit fee schedules, bid/ask spreads and slippage assumptions, then show net returns and sensitivity to those costs.
Disclaimer
The Analysis and recommendations provided are for informational purposes only. Any investment decisions should be made at your own risk. Past performance is not indicative of future results. Always conduct your own research and consider consulting with a financial advisor before making any investment decisions.