Hello Dev community, Sutanto here.
I usually write about Fintech infrastructure and market data analysis. But today, December 24, I want to talk about an "edge case" in financial algorithms: Holiday Liquidity Hazards.
As a former Investment Director who now focuses on data-driven decision-making, I often get asked by developers building trading bots: "Should I let my bot run 24/7?"
The answer, especially today, is NO.
The Bug in the System: Low Liquidity Even though the Indonesian Stock Exchange (IDX) is open today and the NYSE is open until 1:00 PM ET, the quality of the data is poor.
Slippage: With institutional desks empty, the spread between Bid and Ask widens. Your algorithm might execute a "Buy" at a price significantly higher than fair value.
False Signals: Low volume means "noise" looks like "trend." Yesterday, the JKSE index drifted to 8,584. An RSI indicator might scream "Oversold," but it’s not oversold—it’s just empty.
The "Human" Exception Handling In software engineering, we write try...catch blocks to handle errors. In financial engineering, the ultimate error handler is the human operator knowing when to stop.
If you are back-testing a strategy, you will often see that excluding holiday weeks improves your Sharpe Ratio (risk-adjusted return).
My Commit for Today: if (date == "2025-12-24") { execute_trade = false; return "Go_Home"; }
We spend all year optimizing code for speed (latency). Today, optimize for downtime. Gold ($4,495) and Bitcoin ($86,879) will still be there tomorrow.
Happy Holidays to all the devs pushing code today.
https://www.hebitalwealthcollege.com/
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