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I have back tested the one of the strategy and results are shown below. Should I consider this as optimized? I do see a draw down also significantly high. I referred the pine script documentation to analyze. But, I couldn't understood clearly.

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ramkumar-yoganathan
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1 Answers1

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The higher the profit factor the better.

The lower the drawdown the better. In your case, your drawdown is significantly high, 196% drawdown means that your account equity went negative. If my maths is correct, if you had $100,000 capital, your account was in -$196,000 drawdown. People usually aim for less than 10% drawdown.

12 trades is also not enough to judge whether a strategy is good or bad. People usually aim for atleast 100 closed trades.

Win rate/percent profitable and profit are indirectly proportial with each other in large amount trades, meaning the higher the win rate, the lower the profit, and vice versa.

bbnm
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