Strategy building in times of crisis

The market during the crisis can be described in two words, very volatile, just look at the values ​​of the ATR indicator which from the beginning of February 2020 is constantly growing.

So how do you create a strategy that is more likely to succeed in such a rapidly changing environment? The easiest way is to test your strategy in a similar environment. The question is how to do it … I have good news :slight_smile: . Similar volatility occurred in 2008 during the global financial crisis. In the current situation, simply test the strategies during this time period and check the results. If your strategy has passed this test successfully, you have a better chance of making a profit under current conditions.

Everything is great but what indicators and values ​​should I pay attention to :question: … From my knowledge and research, it results that important information can be obtained from profit factor ratios whose value should range between 1.1-3 and Return DD / Ratio which should be greater than 0.4.

I hope this few informations will help you to minimize risk in these hard times :slight_smile: Regards Greg


The strategies that were created before the current crisis and the backtest was a maximum of two years, in the current conditions will most likely lose their profitability.

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