A trading strategy by Quantum Trading Strategies with a 99% win rate is tested through backtesting with a $1000 account across 100 setups using two indicators. The strategy provides 55% win rate and a 104.75% account increase. The video suggests adding baseline or volume indicators to filter out losing trades.
Does the Quantum Trading Strategy Indicator Really Give 99% Win Rate? Let’s Find Out.
Introduction:
The trading industry is filled with individuals looking for the ultimate holy grail of trading. The Quantum Trading Strategy Indicator claims to have a 99% win rate. In this article, we will examine its efficacy through backtesting and analysis, and provide tips on how to improve its accuracy.
Overview of Strategy:
Before we delve into our backtesting results, let’s first take a brief overview of the two indicators that make up this strategy – the UT Bot Alert and the STC Indicator. The UT Bot Alert is used to determine the buy and sell signals, while the STC Indicator is a modified version of the MACD, used to confirm the signals given by the UT Bot Alert.
Trading Rules:
For a long position, the UT Bot Alert must issue a new buy signal, and the STC line must be below the blue plot, colored green, and pointing upwards. A stop loss is set at the recent lowest price, and a take profit target is set at 1.5 times the risk. Conversely, for a short position, a new sell signal must be given by the UT Bot Alert, and the STC line must be above the yellow plot, colored red, and pointing downwards. A stop loss is set at the recent highest price, and a take profit target is set at 1.5 times the risk.
Backtesting Results:
After conducting backtesting over 100 setups with an account size of $1,000, with one to one-and-a-half risk-reward ratio on the price of Etherum USDT on a five-minute time frame, the results were intriguing. While the win rate was not 99%, as claimed, it was still a respectable 55%. Additionally, the profit factor was 1.83, and the account size increased by 104.75%.
Improving Strategy Accuracy:
While the Quantum Trading Strategy Indicator shows promise, there are always ways to improve upon it to increase accuracy. Firstly, adding a baseline indicator to the chart provides more safety and eliminates invalid trades. Secondly, incorporating a volume or volatility indicator can help in further eliminating losing trades.
Conclusion:
In conclusion, the Quantum Trading Strategy Indicator shows potential, but it is not a perfect and infallible indicator as it claims to be. Our backtesting results revealed that while it was profitable, the win rate was not 99%. Utilizing baseline indicators and volume or volatility indicators can go a long way in eliminating invalid trades and increasing accuracy.