RupeeCase
Education . Factor Costs . 3 of 3
How to read a factor pitch
Three ways to see the real premium.
01
The brochure number is gross.
Every factor premium you read is measured before a single trade. What reaches your account is after every buy and sell. Ask for the after cost figure, or assume it is smaller than the headline.
02
Turnover is a bill you pay whether it works or not.
Two rules chasing the same idea can trade five times as often as each other. The patient one keeps almost all of the edge. The busy one hands it to the desk. Slower is not lazy, it is cheaper.
03
The honest counter still points the same way.
Measured on live trades, real costs run lower than the lab estimates, so the big factors do survive at scale. Survive still means less than the paper number. Size the tilt to the net.
A factor premium is measured before the cost of chasing it. What you keep is decided by how often the rule makes you trade.
A rule that trades less keeps more of the edge. That is a design choice.
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