#20 on the Myth-Busting bench, we are automating the "I Found Super Easy 1 Minute Scalping System And Backtest It 100 Times" strategy from "Jessy Trading" who claims 30.58% net profit over 100 trades in a couple of weeks with a 51% win rate and profit factor of 1.56 on EURUSD .
This one surprised us quite a bit. Despite the title of this strategy indicating this is on the 1 min timeframe, the author demonstrates the backtesting manually on the 5 minute timeframe. Given the simplicity of this strategy only incorporating a couple of indicators, it's robustness being able to be profitable in both low and high timeframes and on multiple symbols was quite refreshing.
The 3 settings which we need to pay most attention to here is the Hull Butterfly length, HalfTrend amplitude and the Max Number Of Bars Between Hull and HalfTrend Trigger. Depending on the timeframe and symbol, these settings greatly impact the performance outcomes of the strategy. I've listed a couple of these below.
And as always, If you know of or have a strategy you want to see myth-busted or just have an idea for one, please feel free to message me.
This strategy uses a combination of 3 open-source public indicators: [LIST] *Hull Butterfly Oscillator by LuxAlgo *HalfTrend by Everget [/LIST]
Trading Rules [LIST] *5 min candles but higher / lower candles work too. *Stop loss at swing high/low *Take Profit 1.5x the risk [/LIST]
Long [LIST] *Hull Butterfly gives us green column, Wait for HalfTrend to present an up arrow and enter trade. [/LIST]
Short [LIST] * Hull Butterfly gives us a red column , Wait for HalfTrend to present a down arrow and enter trade. [/LIST]
Alternative Trading Settings for different time frames
1 Minute Timeframe [LIST] *Move the Hull Butterfly length from the default 11 to 9 *Move the HalfTrend Amplitude from the default 2 to 1 *Enabling ADX Filter with a 25 threshold [/LIST]
2 Hour Timeframe [LIST] *Move the HalfTrend Amplitude from the default 2 to 1 *Laddered Take Profits from 14.5% to 19% with an 8% SL [/LIST]
I really like this script but who can i put alert on this?
NicolaeHarabor
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When do u close your trade...?
simwai
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Heyo ty for these tests, I really would like to see a test on the video of TradeIQ called Nadaraya Watson Envelope: Best 1 Minute Scalping Trading Strategy.
myncrypto
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@simwai, Gave it a try. The indicator totally repaints. Also gave the "non-repainting" one a try and got really poor results. :(
simwai
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@myncrypto, ouw that's sad mate. Btw I recommend to always use the last closed candle to avoid the repaint in this strategy test (and your others). Repainting strategies cannot be backtested, because the results are not realistic.
eu12015
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@myncrypto, Hi, I've this strategy - indis are: 1. STD-Filtered, N-Pole Gaussian Filter by Loxx 2. Historical Volatility Percentile & SMA by balipour 3. Correlation with P-Value & Confidence Interval by pig enter position long when 1. is long AND in 2. hist bar close above it's 3 period mean close position when 3. flips from green to white OR from red to white
eu12015
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n.b. indicator n°3 is calculated on n°2
myncrypto
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@eu12015, Thank you. Added this one to the backlog. What do you mean by n.b. indicator n°3 is calculated on n°2 ?
eu12015
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@myncrypto, correlation is calculated on historical volatility and not directly on price... and tnx for Your effort. I'm currently demo trading the strategy. I have problems on correlation signals that are laggy. I'll try to trade on H1 but using the correlation signal calculated on H4. However the base rules for trading with volatility and correlation are here: **** volatility expansion + positive correlation = pump volatility expansion + negative correlation = dump volatility contraction + positive correlation = negative drift volatility contraction + negative correlation = positive drift sideways + positive correlation = negative drift sideways + negative correlation = positive drift **** Trading the drift sometime is productive, sometime is a waste of time cause the market goes nowhere