=== SUMMARY ===
- The author describes debugging an algorithmic trading strategy where a coding error (stop-loss updating with each new same-direction signal) unintentionally improved profit factor from 1.1 to 1.35.
- The thesis is that a dynamic exit rule (trailing stop triggered by successive signals) can drastically enhance profitability compared to a static stop-loss, even if the author didn't originally intend it.
- Quality assessment: noise – personal anecdote with no verifiable data, backtest details, or asset specifics; not reproducible DD.
=== SENTIMENT ===
NEUTRAL
=== TRADE IDEAS ===
No actionable trade ideas in this post.
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reddit algorithm finally figured out what i'm actually interested in and recommended this subreddit so i thought i share this story
it was around 1 or 2 months where i was basically stuck at 1.1 profit factor (after fees and slippage) and i had no idea how to make my strategy more profitable.
it sucked because i manually traded the strategy before and i knew and saw it could work. so i decided to change my stop loss strategy because when i traded it manually i would handle to exit myself and had no particular strategy.
so i wrote a code to allow backtests to ignore strategy's default stop loss and select a custom stop loss strategy instead.
and i tried all different stop loss strategies basically, and none of them were actually better.
the original stop loss of the strategy was also in the list of custom sl strategies , so i thought let's check if it actually matches the results of my previous backtest.
i got profit factor of 1.35...
usually when i get a positive number like this it's almost certainly a bug, so i compared the trades.
turns out it's not actually a bug, it's just a different implementation.
my normal strategy would use a static stop loss and never changed it because i don't believe in trailing stops or break evens.
but the code would update the stop loss price, every time it got a new signal in the same direction of the open position. it was totally implementable.
i still can't believe such a stupid bug and exit strategy affected my profit factor this much.