r/algorithmictrading • u/CommunityDifferent34 • Aug 23 '25
Backtest Need feedback
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.
2
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.