Page Creation Date: 2024.12.04
Last Updated: 2024.12.04

Backtest 007: Daily Line Break Reversal Trading

Environment:
・Opposite Region to the Daily Bollinger Band Middle Line Trend.

Entry: After breaking the most recent daily high (or low) and advancing approximately 20 pips.
Exit: Cut at the break of the most recent 1-hour support line (trailing stop).
Stop Loss: -20 pips / Move the stop loss line to break-even after advancing 20 pips.

・The dates and times of the backtesting results are GMT+2.

Note:
・Reversal trading with daily trend following.

Example: 2024.03.02 10:00 (GMT+2)

Results

Notes:

EUR/USD:
・Usability: NO.
The backtesting was stopped midway due to the Profit Factor (PF) falling below 3 and the trading opportunities being too few at 5.83 times/year.
・Profit Factor (PF): 2.29
Gained: 689.3 pips, Lost: 300 pips, Break-even trades: 16.21% (6/37)、（*2019-2024, approximately 6 years）
・Win rate: 37.84% (14/37)
・Trading opportunities: 5.83 times/year。min.: 4 times/year (2019, 2022) max.: 8 times/year (2024)
・Maximum drawdown: 9 times (-120 pips、2019.03.17 – 2021.02.25, approximately 2 years, up to 3 consecutive stop losses)