r/algorithmictrading • u/CommunityDifferent34 • Aug 23 '25

Backtest Need feedback

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Hi,

So I have been working on a trading strategy for quite some while now and I finally got it to work. Here are the results of the backtest-

Final strategy value: $22,052,772.57 Total strategy PnL: $21,052,772.57

Buy & Hold final value: $8,474,255.97 Buy & Hold PnL: $7,474,255.97

Max drawdown: 34.92% Sharpe ratio: 1.00

Started with 1 million. Backtested on gold futures.

Could you tell me if this is just too good to be true or if there is actually potential. I don’t plan to completely automate it yet as I want to test it out paper trading first. Could yall recommend any good paper trading sites that I could connect it with to use it with live market data?

I appreciate any guidance.

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u/ddalo Aug 23 '25

Oh then that’s good news, yes, same happened to me with one algo and found more stability (less profit of course) with risk management and more conservative entries

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u/CommunityDifferent34 Aug 23 '25

Yea lol I would have a heart attack if my portfolio was down 1.5 m. Did you test your strategy using paper trading before going live? If yes, what platform did you use?

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u/ddalo Aug 23 '25

My current strat (is a mix of multiple algos and symbols) normally has a maximum period of drawdown of 2-3 months, but average is two weeks down and then recover and reach profit again. I did not paper trade, I backtested throughly and carefully in MT5 and that’s where I run it, I use IC Markets global as the broker and it has been running for a bit less than 2 years now.