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Unveiling the Leo Swing Strategy: A Stellar 82.5% Win Rate

As traders, we constantly search for the next best strategy, aiming to maximize profits and minimize risks. Today, we are thrilled to present the Leo swing strategy for NQ 2-hour bars, a new addition to our impressive lineup of trading strategies. The results from our backtesting since mid-2019 speak for themselves, and we're excited to share the details with you.


Overview of the Leo 2hr Swing Strategy


The Leo strategy is crafted specifically for the NQ 2-hour bars and leans on a combination of moving averages, RSI, and volume indicators to identify optimal entry and exit points. This is a long-only strategy, meaning it only takes long positions.


Key Performance Metrics


The strategy backtesting since mid-2019 have yielded impressive results:

  • Total net profit: $133.6K

  • Max drawdown: $10.5K, indicating resilience and robustness in the face of market downturns.

  • Win rate: A stellar 82.5%. This demonstrates the strategy's effectiveness in identifying profitable trades.

  • Profit factor: An impressive 3.4, which suggests that the gains from winning trades significantly outweigh the losses from unprofitable ones.


Leo Strategy Backtest


Key Features of the Strategy

  • Volume Condition: The strategy only takes positions when the current volume is greater than its 3-period SMA. This ensures trades are backed by strong market interest.

  • RSI and Divergence Conditions: The strategy seeks situations where there's a bullish divergence - essentially when the RSI crosses above the oversold level and the closing price is higher than the lowest closing price of the last five periods.

  • Entry and Exit Conditions: The strategy enters a long position when the closing price is above the SMA but below the EMA, provided other conditions like volume and bullish divergence are met. Exits are determined either when the closing price exceeds the EMA or when a stop-loss condition is triggered.


Our Take on the Strategy


The Leo strategy stands out because of its methodical approach, combining various indicators to filter out noise and identify high-probability trades. Its impressive win rate and profit factor make it a valuable addition to any trader's toolkit.


However, as with any strategy, it's essential to understand its mechanics and use it as part of a diversified trading approach. While our backtesting has shown robust performance, past results don't guarantee future returns. It's always recommended to use this strategy in conjunction with sound risk management practices.

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