Improved Trading Strategy Results – Profit Factor Increased to 2.41!

Hello fellow traders,

I recently updated my trading strategy by incorporating overbought and oversold levels of the RSI indicator, and I’m excited to share the results of the backtest spanning from 2008 to 2024. The improvements have been significant, and I believe these changes make the strategy much more robust and profitable.

Key Improvements:

• Profit Factor: Increased from 1.83 to 2.41 (+31.69%)
• Sharpe Ratio: Improved from 0.84 to 1.07 (+27.38%)
• Profit Trades: Increased from 57.54% to 59.93% (+2.39%)
• Risk/Reward Ratio: Improved from 1.36 to 1.61 (+18.38%)
• Average Balance Drawdown: Reduced from 32.76% to 24.94% (-23.88%)
• Average Equity Drawdown: Reduced from 36.70% to 29.53% (-19.55%)

Strategy Overview:

• Symbol: Major and Minor Forex pairs
• Timeframe: ALL
• Leverage: 1:500
• Initial Deposit: $10,000
• Total Net Profit: $214,056,308 over 17 years
• Total Trades: 12,684
• Win Rate: 59.93%
  
  Observations:
  The inclusion of RSI overbought/oversold levels helped filter out low-probability trades, leading to a higher win rate, improved risk/reward, and reduced drawdowns. These updates make the strategy more resilient during volatile market conditions.
  
  Equity Growth:
  The strategy’s equity curve shows steady, exponential growth, with a significant reduction in periods of deep drawdowns compared to the earlier version.
  
  I would love to hear your thoughts or suggestions for further optimization. For those interested in collaborating or learning more, feel free to reach out!

 

Did you take commissions into account (2 orders per day) ?
80% per year is pretty nice Nice improvement.

 

that equity curve is awful - look at the size of those drawdowns and tell me that's ok?

 

Metatrader 5 handles the commisions on backtest , so yes.

 

I m sorry but i have to ask... Are you a programmer? Have you manage a better 17 years backtest? Can you share it?

 

Good Morning Prospergain,

Looks good to me.

Deposit $10,000 and go get rich.

If you live in America, no Forex broker in America will let you use 500:1 (Obama did that, ugghhhhh) leverage.

If you live outside of America, use a reliable and safe broker.

 

you funny noob - like @SimpleMeLike suggested take your personal money and get after it..

 

Curve .............. fitted.

 

I am allready trading my 10K since december 2023
@MarkBrown You did not answered any of my questions.

 

Haha, are you a trader? Do you have these kind of results in real life with real money for even more then a week, month or even one year? I hope you can reproduce these kind of results, it will be fantastic. But I think you will soon find out that backtesting and real results are two complete and different worlds.