Strategy Myth-Busting #20 - HalfTrend+HullButterfly - [MYN]

21 Nov 2022

#20 on the Myth-Busting bench, we are automating the "I Found Super Easy 1 Minute Scalping System And Backtest It 100 Times" strategy from "Jessy Trading" who claims 30.58% net profit over 100 trades in a couple of weeks with a 51% win rate and profit factor of 1.56 on EURUSD .

This one surprised us quite a bit. Despite the title of this strategy indicating this is on the 1 min timeframe, the author demonstrates the backtesting manually on the 5 minute timeframe. Given the simplicity of this strategy only incorporating a couple of indicators, it's robustness being able to be profitable in both low and high timeframes and on multiple symbols was quite refreshing.

The 3 settings which we need to pay most attention to here is the Hull Butterfly length, HalfTrend amplitude and the Max Number Of Bars Between Hull and HalfTrend Trigger. Depending on the timeframe and symbol, these settings greatly impact the performance outcomes of the strategy. I've listed a couple of these below.

And as always, If you know of or have a strategy you want to see myth-busted or just have an idea for one, please feel free to message me.



This strategy uses a combination of 3 open-source public indicators:
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*Hull Butterfly Oscillator by LuxAlgo
*HalfTrend by Everget
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Trading Rules
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*5 min candles but higher / lower candles work too.
*Stop loss at swing high/low
*Take Profit 1.5x the risk
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Long
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*Hull Butterfly gives us green column, Wait for HalfTrend to present an up arrow and enter trade.
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Short
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* Hull Butterfly gives us a red column , Wait for HalfTrend to present a down arrow and enter trade.
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Alternative Trading Settings for different time frames

1 Minute Timeframe
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*Move the Hull Butterfly length from the default 11 to 9
*Move the HalfTrend Amplitude from the default 2 to 1
*Enabling ADX Filter with a 25 threshold
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2 Hour Timeframe
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*Move the HalfTrend Amplitude from the default 2 to 1
*Laddered Take Profits from 14.5% to 19% with an 8% SL
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