Strategy switching costs: what do you actually pay when you change?

Switching strategies costs more than time: the new one starts untested, the old one's lessons go unused, and the switch itself often hides an emotional reaction to a loss. The costs are real and invisible.

Strategy switching costs: what do you actually pay when you change? — risk-reward diagram
A risk-reward ratio of 1 to 2

What did switching cost you?

  • the strategy you left and why
  • what the transition actually cost
  • how you now evaluate a potential switch
Strategy switching costs: what do you actually pay when you change? — candlestick anatomy diagram
The parts of a candlestick: wick, body, open and close

The expectancy guide argues for earning the sample before judging a strategy.

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