Sorry to have to point this out, but this is actually a major red flag because micro NQ has monster volume, 1.75 million contracts a day. The Micro NQ price is very tightly arbed with the bigger NQ price, rarely goes out of line by much. If your system cant make money live trading 1 lot of micro NQ, then i doubt it will make money live trading the full size NQ either.
Why'd you switch from full NQ contracts? Equity curve looks great. Doesn't even have that Sophomore slump. No major drawdowns. Could you put an 8ema on that equity curve please?
1.29 in a raging bull market is decent unless slippage was not accounted for properly. I would do it because the market can't stay in bull mode forever
Not enough data. The shorter your backtesting window, the better the fit. You've not seen all the market phases in this window. Longer term bear? Sideways for a year? That's assuming it has anything to do with a bull market. Some of my short stuff works better in a bull market, it's all in the timing.
I do not know if it's possible, but you could ''flip'' your method to perform in a bearmarket, or trade your same method on an inverse instrument. Then you can mix money allocated to both 'methods' and maybe reduce your drawdown (the mix offcourse doesn't have to be 50/50). With this, also be aware of overfitting.
Long side doesn't really mirror the short side, so it would not work. There's different dynamics at play - markets rise with low volatility and decline with high volatility etc.
Exactly, declines behave 'different' from rises. Some methods work in both ways, others don't. It all depends. Since we don't know the inner workings it's not possible to asses.