PowerX Strategy Backtest by drg86
By drg86
Performance Metrics
- Author: drg86
- Symbol: NASDAQ:AMCX
- Timeframe: 1 day
- Net P&L: +1,841.13 USD (+18.41%)
- Win Rate: 43.5%
- Profit Factor: 2.038
- Max Drawdown: 812.63 USD (7.91%)
- Total Trades: 23
- Sharpe Ratio: 0.228
Description
This script implements the Power X trading strategy by Markus Heitkoetter and Rockwell Trading. The strategy is described in detail in "The PowerX Strategy: How to Trade Stocks and Options in Only 15 Minutes a Day" written by Markus Heitkoetter.The Power X trading strategy uses RSI, Slow Stochastic and MACD indicators. When RSI and Slow Stochastic are both greater than 50 and MACD crosses up the signal line, it signals an up-trend. If RSI and slow stochastic are both less than 50 and MACD crosses down the signal line, it signals a down-trend. Other conditions signal no trend. There is an official version of this indicator available: PowerX Strategy Bar Coloring OFFICIAL VERSION.This script opens a long entry with an up-trend momentum and a short entry with down-trend momentum. Trades are exited when profit target or stop loss is reached. Profit target and stop loss are calculated based on 7 days Average Daily Range (ADR). If the momentum is lost, a trade is exited the next day. The quantity of assets to buy/sell is calculated based on the stop loss to limit the risk to a user defined percentage of the initial capital.There is another implementation of the Power X trading strategy available by therealhaolu: Power X Strategy Back-test. However, according to the comments this script seems to have some flaws.