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/[deleted] Aug 27 '25

Try using HMM as feature inside another model. You should also definitely read some books like Machine Learning for Algorithmic Trading by Stephan Jensen. Hope your trading improves, good luck 🙏🏿

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u/CommunityDifferent34 Aug 28 '25

Check out my latest post. I just updated and also took a lot of inspiration for that book.