Backtesting · Noble Traders

Backtesting

Posted previous backtest and todays backtest screenshots.

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Strategy based on: OBV, Stochastic Oscillator, SMAs, Volume indicator

Time frames: 1W, 1D, 4h

I took about 1.75 hours backtesting. Although I did not enter that many positions, I figured out a few things about myself and my system.

I realised that I do not like to be rigid at all times, I like to have SOME flexibility to just say

"no I do not want to take this trade, I don't understand it"

"no, I do not want to take this trade because I do not understand my emotions/ internal state at the moment"

"I like this trade, my gut is giving me a good feeling, I have signals ready bar one, I am going to be more careful but be aggresive".

Other things I noticed, the system does provide good signals, most of the time the trades do end up hitting profit. If it weren't for myself revenge trading on a backtest late last session, this strategy would be looking a lot hotter 🤣 on the screenshots.

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Something I learned about market structure;

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1) Sometimes there are bigger moves waiting to happen when key areas on higher time frames are providing signals. I had a few trades which were potential 9:1 R/R trades that I only closed for 2:1 R/R (Cue the revenge trading emotions again because I missed out, this time I just decided not to trade those pairs up until the next divergence came around on the highest time frame I trade).

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2) Keeping an eye out for those would be beneficial in the future, although as of right now I am only running a very rudimentary backtest to get a feel of my system and myself. Especially considering if I test dynamic position sizing, those winner could be ALPHA (needs to be tested).

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P.S.

I want to start demo trading ASAP to get a feel of this on the day to day.

Please share your thoughts and feedback, I do take my time to look and reply.

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