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machine.js

  const tradingStrategyMachine = Machine({
    id: 'three-step-trading-process',
    
    initial: 'backtesting',
    
    context: {
      timesRefactored: 0,
    },
    
    states: {
      backtesting: {
        on: {
          CONSISTENT_GAINS: 'paperTrading',
          CONSISTENT_LOSSES: [
            {
              cond: 'withinMaxRefactors',
              target: 'refactoring',
            }, 
            {
              target: 'abandoned',
            }
          ],
        }
      },
      
      refactoring: {
        exit: 'incrementRefactors',
        on: {
          REFACTORED: 'backtesting',
        }
      },
      
      paperTrading: {
        entry: 'resetRefactorCount',
        on: {
          CONSISTENT_GAINS: 'cautiousTrading',
          CONSISTENT_LOSSES: 'refactoring',
        }
      },
      
      cautiousTrading: {
        on: {
          CONSISTENT_GAINS: 'activeTrading',
          CONSISTENT_LOSSES: 'paperTrading',
        }
      },
      
      activeTrading: {
        type: 'final',
      },
      
      abandoned: {
        type: 'final',
      },
    }
  }, 
  {
    guards: {
      withinMaxRefactors: ({timesRefactored}) => timesRefactored < 3,
    },
    actions: {
      incrementRefactors: assign(context => {
        const {timesRefactored} = context;
        
        return {
          ...context, 
          timesRefactored: timesRefactored + 1,
        };
      }),
      resetRefactorCount: assign(context => ({...context, timesRefactored: 0}))
    }
  });