Thread by @TechArque

#1
Here’s the Trade Setup for the Volatility Burst Strategy:
Volatility = ATR of the last 20 Days
High & Low Vol = Highest High & Lowest Low of Volatility in last 252 Days
Upper Band = Highest High of High over the last 50 Days
Lower Band = Lowest Low of Low over the last 50 Days

#2
Back-test reports of the Volatility Burst Strategy show that its Annual Return Percentage is 28.47%. This is what the equity curve looks like.

As you can see, it’s important to take a position at the right time. But it’s also important to know how to exit when you’re losing.

#3
The drawdown graph of the Volatility Burst Strategy shows the maximum loss incurred.
The next step? We’re going to add a trailing stop loss and see what happens next.
#backtobasics #trading #algotrading #backtesting #volatility #indicator #drawdown #volatilityburststrategy

#4
With a few changes in the system, we’ve been able to add a trailing stop loss parameter. Check out the changes in curves after this alteration!
Do you think a percentage-based stop loss, or a point-based stop loss would have made more sense?
#backtobasics #trading #algotrading

#5
Like always, we added a target profit parameter.
Here are the curves.
A look at the differences tells you that we’ve improved by a lot. Even the CAGR has increased to 52.64%. Do you also have any trading ideas you’re thinking of back testing? #trading #tradingstrategy #equity