SPX with LongBuyLongSell Strategy How to Test Profitability Bot

Please not this is only for EDUCATIONAL PURPOSE.
Here i have used my own indicator "LongBuyLongSell Indicator" the strategy version to check

1. Which time frame it is working best
2. What are the Entry conditions and how to choose the Entry
3. What are the profitability and the Max Draw down
4. Is there any Risk of Blindly following the Strategy.
5. Back-testing Results

Let me try to explain this one by one.

1. Which time frame it is working best
1. In order to be very profitable or successful in trading first we need to know in which time frame the Strategy works Best.
as i used my own LongBuyLongSell indicator it was easy to switch timeframe and check in which frame it works best.
As far as i tested the results are good in 30MIN,4H ,Moderate in 15min , Negative in 5min.
This gives me a clear picture that i can trade on 30Min or 4H.

2. What are the Entry conditions and how to choose the Entry /Exit
--> There is always good to choose a script which is simple to use and to get clear Entry and Exit.
-->Next it is better to choose a strategy based on the Close of the Candled ,This means the trade will be open by the close price of the previous candle but in the current candle.
--> The Advantage of Choosing "Close" or "Once Per Bar Close " strategy is the repaint or false trigger of the indicator will not impact the success rate as the entry is taken on the BAR /Candle Close.
--> In this indicator there is two possibility

• Entry By Blue /Black Color Candle (After the Black/Blue) or
  
• Entry By BackGround Color (After the Red /Green) or
  

--> Exit also has two clear and neat criteria

• Exit By Blue/Black Color Candle when opposite color appears on Close of the BAR or
  
• Exit By BackGround opposite Color (After the Red /Green
  

Example : Blue candle is the Entry ,then Black candle is the Exit (Long Side)
Red Background is the Entry then Green Background is the Exit(Short side)

Now the Strategy is clear what are we going to do .

3. What are the profitability and the Max Draw down
After the conditions are set ,it is better to test how profitable a strategy will be to use .In order predict this tradingview.com backtest (strategy tester ) will be very helpful.
Here i have chosen 1year 5 Months for testing and did a testing since from 2018.Both results has given more than 10% profit and 25% profitability percentage .
And one more finding i have seen is the draw-down is less which is 3-5%
Please note the draw-down must be lesser than profit percentage ,this is the key for good strategy .If the draw-down is more then no use of using any strategy.

4. Is there any Risk of Blindly following the Strategy.
Yes there is a risk of following anything blindly that is real trading will have huge difference than the historical this may be on the positive side or can go on the negative side as well.
Since the strategy takes only the closing some time huge wicks or huge price variation may impact our trading as it will show huge loss and we tend to close emotionally .
So before we trade anything we need to check the lowest points and highest points plus volatility.If the volatility is too high be careful while trading .Especially when doing Auto Trading.

5. Back-testing Results
Check the back test in various time frames and adjusting the commission ,Tick order filling ,contracts ,capital and the start and end date of testing to come to a conclusion.
As an example i have shown the 30min Back-test result of S&P here for your reference.

Note : This is just an educational post to make some awareness.

If you wish to see how the LongBuyLongSell Indicator works here is the link for both scripts.
Alert version (that can be used for BOT trading Alert signal generation )
Strategy version


If you wish to appreciate ,LIKE ,COMMENT and Follow me .

Once all the data output is positive ,and the results are good for any strategy it can be taken for AUTO BOT trading .There are plenty of plugins available today to do this .Tradingivew helps getting the ALERTS to do automatic trading using the third party plugins.

HAPPY TRADING ,STAY TUNE.