I Tried MY Trading Strategy for 30 Days SHOCKING RESULT | Backtesting a Trading Strategy

Trading context / instrument

• The speaker describes a candlestick-based trading strategy (no specific market/ticker named).
• They also mention the strategy could be applied to crypto futures (with a referral/link to Delta Exchange).

Timeframes

• Primary backtest timeframe: 1-hour chart
  • Trades occur about every 1–2 days.
• Optional alternative timeframe: 15-minute chart (for more frequent signals).
• Backtest window: Aug 1 to Aug 30 (about one month).
• An example segment references a “7th trade” around the 13th day of the month.

Strategy methodology / step-by-step framework

Core pattern logic

• Identify Hekinashi (Heikin-Ashi / “Heki Nashi”) candle direction:
  • Green Hekinashi candle → assume uptrend
  • Red Hekinashi candle → assume downtrend
• Entry trigger:
  • When price comes near the Hekinashi candle:
    • Buy near green Hekinashi candles during uptrend
    • Short (sell) near red Hekinashi candles during downtrend
  • Trend filter:
    • If bearish → only take shorts
    • If bullish → take longs

Risk / reward rules

• Stop loss (SL):
  • Longs: place slightly below the recent low (below the recent swing/low region)
  • Shorts: place slightly above the recent high (above the recent swing/high region)
• Take profit (TP):
  • Target is 1:3 (described roughly as 15% reward vs 5% risk)

Position sizing & risk management framework (explicit)

• Example capital shown: ₹2000
• For each trade, they use only 50% of capital
  • Example: ₹10,000 used per trade
• Maximum risk per trade: 5%
  • Example: risk = ₹500 when using ₹10,000
• Expected target: 1:3
  • Approx ₹1500 profit if TP hits

Operational note

• The speaker notes that many “useless trades” happen during sideways (range-bound) market conditions, and accuracy could improve by avoiding those periods.

Key backtest results / performance metrics (explicit numbers)

• Total trades shown: 13
• Wins vs losses:
  • Losses: 5 trades, totaling ₹2500 loss
  • Profits: 8 trades, totaling ₹12,000 profit
• Net outcome over the month (as described):
  • Starting capital: ₹2000
  • Ending capital: grows to about ₹29,500 by the last sequence (as implied in their running examples)
  • Net summary also states +₹12,000 profit
• Performance rate (as stated):
  • Profitable trades: 8/13
  • They state that profit in eight trades corresponds to 15% (appears to reference their per-trade return logic and/or an aggregate return they computed)
• Risk management emphasis:
  • They stress that without proper risk management, a single bad trade could wipe out the account (“all our money” could be lost in one trade).

Explicit recommendations / cautions

• Recommendation: Backtest the strategy “in this manner” before using it live, ideally for a full month to confirm results.
• Caution: Expect 2–5 losses at the beginning; don’t abandon the strategy immediately if the backtest suggests it can recover.
• Improvement suggestion: Avoid periods when the market is moving sideways to improve accuracy.

Disclosures / disclaimers

• No explicit “not financial advice” disclaimer appears in the provided subtitles.

Tickers / instruments / assets mentioned

• No specific stock/ETF/commodity tickers are named.
• Crypto futures are mentioned, specifically via Delta Exchange.
• Claims include:
  • Leverage up to 200x on that platform
  • A statement that “30% tax is also not applicable” for futures (as claimed by the speaker)

Presenter / sources

• Presenter: the speaker in the video (name not provided in subtitles)
• Referenced platform: Delta Exchange (via link in description)