# Automated Trading Strategy #11

### Strategy 11 made over $25K the last 12 months and has a Profit Factor of 1.05

May 20 | 2 |

*Risk Disclaimer: There is no guarantee that these strategies will have the same performance in the future. We use backtests to compare historical strategy performance, but there are no guarantees that this performance will continue in the future. *

## The following is list of all published strategies.

## Backtest Results based on 1 year of trades

**See below for Column Definitions*

**Strategy #11 Description:**

*Futures Contract: NQ*

Strategy #11 uses the FisherTransform (Period 10) and Variable Moving Average (VMA) indicator:

**Enter Long** -

When FisherTransform (use VMA as data series) crosses above 0.

**Enter Short** -

When FisherTransform (use VMA as data series) crosses below 0.

**Parameters:**

FisherTransform Period: 10

*Note: We are using VMA as the data series for FisherTransform*

Variable Moving Average Period: 9

Variable Moving Average Volatility Period: 9

**You can test the strategy by duplicating backtest results.*

This is what the strategy looks like in chart form:

**All of our strategies have the following attributes:**

Only work with a certain data series type and value (

**Range, 36**)Are based on trading the most recent

*NQ futures contract*Are based on trading 1 contract, but you can use as many contracts as you want by changing the parameters in the strategy.

**Please contact me directly for help with this.**

**See below for instructions on how to run a strategy once downloaded.**

If you've never used/run a strategy in NinjaTrader 7, NinjaTrader provides instructions here.

*Column Definitions:

**Strategy**- The name of the strategy.**Trades**- The number of trades used in the backtest to analyze performance. Our goal is ~1,000 trades for comparison.**Start date**- The beginning date of the backtest.**End date**- The ending date of the backtest.**# of days**- The number of days in the strategy.**Drawdown**- This refers to the maximum drawdown statistic, which provides you with information regarding the biggest decrease (drawdown) in account size experienced by the strategy. Drawdown is often used as an indicator of risk.*Drawdown = single largest Drawdown*As an example, your account rises from $25,000 to $50,000. It then subsequently drops to $40,000 but rises again to $60,000. The drawdown in this case would be $10,000 or -20%. Take note that drawdown does not necessarily have to correspond with a loss in your original account principal.

**Profit**- The net profit made on the strategy for the backtest.**#trades per day**- The average number of trades made per day using the strategy.**Profit / Day**- The average profit made per day.**Profit / Trade**- The average profit made per trade.**Lowest daily new profit**- The worst performing day of the strategy in the backtest.**Highest daily net profit**- The best performing day of the strategy in the backtest.**Profit Factor**- Gross Profit divided by Gross Loss

2 |

Thanks Matt. We'll add profit to loss ratio to our next update in July. Thank you!

Just found your site through Medium and I immediately started following. I love technical trading strategies and hope to follow along your path to finding the Holy Grail!

Another metric you might want to keep in mind is your "Profit to Loss Ratio", along with the "Win Rate" you're tracking currently. Day traders pay close attention to their Profit : Loss Ratio, which the formula is:

Average Winner / Absolute Value of Average Losers

When this is coupled with the Win Rate, it gives a good idea of the profitability of the average trade of the strategy. For example, if your average winner is $2, and your average loser is $1, that equates to a 2:1 Profit:Loss ratio (or "2" as the main number), which also means you only have to be "right" 33% of the time to break even, every point over 33% means you'll be profitable long term. It's similar to Profit Factor, except that it takes the averages, not the gross amounts of each, which a few large winners/losers can sway easily. This graphic from Warrior Trading is a good reference for the P:L Scale:

https://media.warriortrading.com/2018/05/blog_slim_profit_loss_ratio_graph.jpg

Just my two cents as a contribution to your work! Best of luck!