I have done a bit over 350 test trades for the 1H-timeframe-based trading strategy. The graphs below beg some difficult questions to be answered – anybody want to have a guess at what problems the graphs show? [note the y-axis always shows the profit/loss measured in units of risk]
The above graph shows the cumulative profit/loss from March 2015 through to the end of February 2016.
(note – the testing period covered March 2015 to February 2016 – so January and February are the 2016 months, whereas all the other months relate to 2015)
(the final graph plots the profit/loss per trading session (i.e. one day) against the number of trades entered into during the session. Some trades are not exited on the day of entry – the graph doesn’t adjust for that) [Apologies if the dots are on the faint side!!]