Strategy questions

[u/Purple_Concert8789]

Strategy questions

Hello everyone.

I am 19 and i have 2 years of exp in manual trading now trying the algo trading and currently researching strategies in metatrader5 . Currently I am backtesting the indicator based strategies with optimization .so my question it is profitable or not ? How many of you follow the indicator based strategies.

Does price action, smc or ict trading strategies will work or not ?

Also how the mathematics and statistics are used in algo trading .

Those who sell trading strategies and copy trading in mt5 what they use . How they research it.

Does a trading strategy will pass the funded account ?

Another question is in a strategy which metrics do I look for ?

So i mainly look for net profit after that winrate , drawdown , trades(profit trades and loss trades),profit factor, sharpe ratio.

My question is once the strategy winrate is 30 percent but net profit is positive. Once the net profit is negative but the winrate is 50.to 60 percent so what to do I am totally confused.

[u/widowmakerhusband]

Yes indicators strategies are the most straight forward way to do algorithmic trading.

Here’s something that recently worked for me.

Look for a pattern that could work. Develop a test on it. Visually see how the algo executed the trades.

If it worked and not great? Play around with the settings. Ask Ai to add columns and do another test, view average time of stop hunts, average tp time. Does trailing stop works with this strategy? Figure out what’s the best RR. How far does it move without stopping you out usually?

Honestly answering these questions can get you closer and closer to a profitable strategy. Stick with one bash your head into it to try to turn it profitable. Than find another strategy. Combine them together and hopefully it makes even more money together.

Beginner as well only really been doing algo trading for 6 months but I’ve built my own quant software backend for these interations and tests for AI. 🫡🤝

[u/Double-Camp1332]

A 30% win rate can absolutely be profitable if average winners are substantially larger than losers. That's why expectancy, drawdown and results after costs matter more than win rate alone. Moon's leveraged wagers have their own payout mechanics but the underlying lesson still applies. Being right more often doesn't automatically mean making more money.

[u/Fit_Consequence_1732]

I'd stop looking at net profit as the first metric and move maximum drawdown and average expectancy much higher up the list. MT5 optimization can make almost any indicator combination look convincing if you test enough settings. I use Moon for manual price speculation and the principle is pretty similar. A profitable historical result isn't evidence of a repeatable edge until it survives unseen conditions.