This Algo Strategy Has Only 3 rules and 62% Win Rate

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In this video, I'll share a very simple algorithmic trading strategy that only has 3 entry/exit rules and generates over 62% win-rate. I then apply this algo strategy on Futures markets to quadruple its original profit to demonstrate how you can increase performance of your strategies without making any changes to their rules

[CriticalTrading]

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[terusensei_japones]

Honest, straightforward video. I was looking for something like this. Thanks!

[Henry-zwys]

Results in backtests vary wildly between pairs and timeframe. Drawdowns are also severe (80%+), so this unfortunately is not a viable strategy imo.

[amsalmeron]

Nice video! Although I agree that you souldn't ditch a strategy because it doesn't have high returns, you do need to consider it against other investments. In the present case, you'd incur in fees and the work of actually monitoring markets for this strategy but would still end up with a result that's less than the average yearly return from the S&P 500 from 2008 to 2020 (11.3% against 7, 52%). Educational value aside, it's not really that good of a strategy. Forward testing may bear more interesting results if you include some fundamental criteria like only trading the best performing ETFs or something like that. Cheers and thanks for the content!

[itmmarlau]

Quite generous of you to share this. Obviously I’ll backtest this on my own, but have you attempted that in Forex?

[LeighRemedios]

I've been binging your videos this weekend (great content, unlike anything else on YouTube regarding trading). Aren't you all about not using indicators? Eg moving averages, ATR

[marcovalentinoalvarado]

You have a godblessed free ebook? What are you an angel? jesus christ! Thanks Sir!

[MrPaulzeng]

Hi David,
Thanks for your video!
I wonder if you've given thought to this strategy: often traders lose money because their stop loss gets hit and the price bounces back but the trader is no longer holding that position. What if you can write code that upon your stop loss sale, you place a limit order to buy back at the sale price? And then on the upside, you set a trailing stop loss (and if the trailing stop loss gets hit, you’d also place a limit order to rebuy the stock at the stop loss price) This strategy essentially limits your downside and lets you participate more fully on the upside, and takes the “art” out of guessing the optimal stop loss and take profit price levels. I wonder if you’ve ever considered this strategy and if you see any problems with it. Thanks in advance for your response :)

[rpatel]

Hi David, I would like to know more about what tool do you use and how do you simulate it? Do you have a course for it or can you teach that?

[arjungutta]

14 years is a crazy backtest lol but this is a great vid

[ChisomBenjamin-xprx]

i have algos that has a drawdown of your monthly results in a week and year results in a week as well.... have safety parameters TP, SL and trail SL for profit protection.... damnn.. i thought it was 62 percent
in a year brooo

[kerryriordan]

You make a point of the fact that your capital is only at risk for 20 percent of the time
The problem I see with that is that you don't know which 20 percent
This means that you are not at liberty to employ your capital elsewhere for the other 80 percent
The capital is on call and cannot be used elsewhere in case it is needed

[sijacquz]

Could this be used on stocks to generate more trades and thus higher return?

[mohammadanbar]

thank you so much David, your channel and content is very very very valuable, much appreciated

[antoniodalfior]

In your strategy after the stop loss you have to enter long the very next bar, or i missing something?You should explain the rule to enter after the stop

[thetagang]

I get a completely different equity curve, the sharpe drawdown in 2020 makes it untradeable

[adamoneill]

Awsome video, do you have a video explaining stop losses in abit more detail?

[anlamkemalyuksekli]

Hello everyone, ı would like to ask a question. While you were doing algo trade which platform/software do you use for S&P 500. Thank you all best regards

[hunor]

Hi David, great video! Do you also have a course teaching algo trading, or your course is focused on discretionary approach only?

[TheCheukhin]

why so many people say great? It is bad

1:57

How can C> MA(C, 200)??

You time travel. You cannot know the MA (C, 200) before market close.

The correct one should be:
C> Ref(MA(C, 200), -1)