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Philosophy · 03 of 06

anicca

Impermanence.

Markets change regime. Every edge decays.

ISutra

All conditions are impermanent—

when this is seen with wisdom,

one grows disillusioned with suffering:

this is the path to purity.

— Dhp 277 · The Path · Sayings of the Dhamma (Dhammapada)

Translated by Bhikkhu Sujato (CC0), as published on SuttaCentral 11 Nov 2026

IIPrinciple

Everything is re-tested, continuously.

No strategy is validated once. Market structure, participants and costs drift; the conditions that produced an edge change, and the edge changes with them.

So every live strategy carries its own expiry test: it is re-evaluated on each new window, and retired when the evidence that admitted it no longer holds.

IIIProof

αt = α0 · e−λt
Proof · every edge is impermanentIllustrative · seed 4
cumulative returnre-test thresholdrolling 6-month Sharpere-test → retire3 years of simulated trading days
A simulated edge that decays exponentially, αt = α0·e−λt, buried in daily noise. The curve keeps looking fine for months after the edge is mostly gone; the rolling 6-month Sharpe ratio crosses the re-test line first. Nothing is validated once — everything is re-tested on every new window.