Someone has published some Python backtesting code that claims to have made 8371% profit. Can some experts here analyse/verify/confirm/comment it? : "An Algo Trading Strategy which made +8,371%: A Python Case Study Backtesting of a simple breakout trading strategy with APIs and Python" By Nikhil Adithyan
Similar Q has been asked a few thousand times. You can SEARCH for the answers. Also You have to test it with real $$$$. Similarly there are trading systems which yields 100% win rate.
Good Morning Quanto, I have an algo trading system I built the other day that made 20,000% in one month in back test. And another that made 100,000% in back test. Lol just kidding. But here is my point. You have to run it live for a year or two to see if theory matches real time.
You scan for a strategy that matches a certain period of time in the past. How difficult is that? This activity is the main scamming method for subscriptions, lessons, EA marketing etc.
But the question is: did the guy apply such a dirty-trick to get that result? I can't believe he did, but I don't have time to check it; maybe some of you guys can do a deep analysis...
One major problem: it is a long-only strategy on AAPL, which returned 100,000% since 1993 (approximately 20 cents to $200, dividends reinvested). So this strategy actually vastly underperformed a buy-and-hodl strategy over the same period, and hence is totally worthless.
I like how article starts off "well, we're not going to use traditional systems like rsi/sma crossover".. then proceeded to using fuckng donchian channel as if it's such a revoutionary new strategy.