A six-cent signal in a ten-cent market
A stock is quoted bid, offered. Your model says the mid, currently , will rise about cents over the next few minutes.
If you enter and exit with market orders, does the signal make money? What are your alternatives?
Show a hint
Measure each market order against the mid, and remember you pay to get out as well as to get in.
Your answer
This one is open-ended. Work it through, then check your reasoning against the full solution.