Partner Center Find a Broker

I promised you last week that I would finish backtesting the second version of the HLHB. And I did! I have dark circles under my eyes from staying up too late but I owe it to you guys for pushing me to apply for the assistant manager position. Y’all are so sweet!

So without further ado, here are the results:

The HLHB System Version 2 Back Test Results (August 2008 to January 2011)

Total Number of Trades: 30
Number of Winning trades: 9
Number of Losing Trades: 21
Win %: 30%
Loss %: 70%
Largest winning trade (pips): 358
Largest losing trade (pips): -150
Average winning trade (pips): 227
Average losing trade (pips): -176
Longest winning streak: 3
Longest losing streak: 8
Largest drawdown (pips): -1428
Average drawdown (pips): -178
Total Pips: -1800
Total %: -7.95%

As I expected last week, the final results aren’t that great. In fact, they’re much, much worse than those of version one. Just look at that 7.95% loss!

I observed from my testing that the system caught a lot of false signals and failed to catch a lot of really profitable ones, which is completely the opposite of what a mechanical system is supposed to do!

This is such a total bummer… But I guess that’s what backtesting is for – to find out whether a system works or not! So, with that said, it’s back to the drawing board for me. For now, I’ll stick with the old system until I can come up with something better.

If you have suggestions, please feel free to comment below. I’ll check them out later after I get my hair done. You know, just in case someone decides to ask me out on Valentine’s Day.


This content is strictly for informational purposes only and does not constitute as investment advice. Trading any financial market involves risk. Please read our Risk Disclosure to make sure you understand the risks involved.