BackTests
Trading Rules
Trade with Precision
Enter long or short positions based on real-time signal triggers. Each signal is derived from prior candle data, allowing for entries at or near the open of the signal bar.
Easy Risk Management
Set stop loss and take profit levels—no complex setup required.
Stacked Signals Allowed
When a new signal appears, we take the trade. Existing trades remain open—no forced closures. Overlapping positions are fully supported.
Generalization
Consistent Logic, Adaptive Risk
Our core trading logic stays the same across all market environments. The only variables we adjust are stop loss and take profit levels. In some cases, we may choose to close positions at the end of the trading day—but the strategy logic itself never changes.
Data is shown as point gains, not dollar gains. 1 contract was used for each test.
Compression Indicator Settings Used:
Morning Toggle: Off
Input Multiplier: 0.75
AI Rules
Risk/Reward Focused
We use a minimum 3:1 risk/reward ratio. Higher R:R set
Drawdown Control
All strategies are designed to stay under a 30% max drawdown, with a target range of 10–20%. This buffer helps avoid overfitting while preserving performance under varying market conditions.
AI-Driven, Human-Verified
Before finalizing any strategy, a random sample of trades is manually reviewed to validate the AI’s consistency and reliability.
NQ (Nasdaq Futures)
Standout Performance
While all timeframes performed well, the 15-minute chart clearly outperformed the rest—delivering over twice the point gains in a shorter span. Low drawdowns allow for contract scaling.
GC (Gold Futures)
High R:R Outlier
The first chart displays an unusually high take profit level of 360. Despite its extreme target, the profitability of this setup reinforces our core belief: high risk/reward setups outperform lower R:R ratios. When they hit, the payoff is significant. While this chart is an outlier, the others in the image show steady, consistent gains using more conventional stop loss and take profit levels.
YM (DOW Futures)
DOW Strategy: Surprisingly Strong
Trading the DOW delivered unexpected consistency with controlled drawdowns. It matched the index’s point returns—but with significantly lower drawdown. This opens the door for scaling position size, potentially doubling or tripling returns while still keeping drawdowns under 25%.
ES (S&P 500 Futures)
RTY (Russel Futures)
Flipping The Script
These two tests initially showed extreme downside—heavy losses that clearly stood out. Since we were working with a simple red/green indicator, we decided to flip the signals. Surprisingly, that change made all the difference. ES (S&P 500 Futures) and RTY (Russell Futures) responded exceptionally well. These two indices exhibited a different volatility profile compared to the other three we tested, and the flipped logic aligned perfectly with their price behavior.
Both setups showcase smooth, impressive equity curves with only minor drawdowns. The level of consistency they maintain across market conditions is genuinely remarkable—it’s exactly what we aim for in a reliable trading system.
What We Learned
Across five distinct markets, our compression indicator consistently performed through bearish, bullish, volatile, and even crashing markets. The core logic remained unchanged—only the risk/reward levels were adjusted—demonstrating both its reliability and scalability.
Throughout this process, we gained valuable insights into backtesting consistency and market structure behavior. This page will continue to be updated with future tests from this and other indicators in our suite.
Backtest results are for informational purposes only and do not guarantee future performance. Trading involves risk—use your own judgment while trading.