Phase C: Structural Stop-Loss Backtest Results

Run date: 2026-04-13 Period: 2016-01-01 to 2025-06-30 (OOS from 2024-01-01) Universe: v5.1 optimized filter Patterns: bullish_engulfing, outside_reversal, 2b_reversal, 3bar_flush_reclaim Matrix: 4 patterns x 6 SL x 7 TP = 168 configs

Test Matrix Summary

  • Total configs tested: 168
  • Configs with trades: 168
  • Total trades across all configs: 100128
  • Avg trades per config: 596.0
  • Configs with n>=30: 168

Top 20 Configs (by Expectancy x sqrt(N))

RankConfigPatternSLTPNExp(R)WRPFSharpeMaxDD(R)Bars
13bar_flush_reclaim_SL-3_TP-63bar_flush_reclaimSL-3TP-67143.0133.2%4.110.54-89.008
2bullish_engulfing_SL-3_TP-6bullish_engulfingSL-3TP-65173.4533.5%4.580.54-103.008
3bullish_engulfing_SL-3_TP-5bullish_engulfingSL-3TP-55172.8629.3%4.161.16-46.164
43bar_flush_reclaim_SL-3_TP-53bar_flush_reclaimSL-3TP-57141.7729.5%2.961.10-55.083
5bullish_engulfing_SL-3_TP-4bullish_engulfingSL-3TP-45172.07924.8%3.761.52-23.663
63bar_flush_reclaim_SL-3_TP-73bar_flush_reclaimSL-3TP-77141.64914.7%2.932.86-32.912
73bar_flush_reclaim_SL-3_TP-43bar_flush_reclaimSL-3TP-47141.52023.8%3.002.04-26.753
8bullish_engulfing_SL-4_TP-6bullish_engulfingSL-4TP-65171.7464.5%2.830.46-69.4411
93bar_flush_reclaim_SL-3_TP-33bar_flush_reclaimSL-3TP-37141.42619.6%2.773.53-27.341
103bar_flush_reclaim_SL-3_TP-23bar_flush_reclaimSL-3TP-27141.41322.8%2.833.79-22.251
113bar_flush_reclaim_SL-3_TP-13bar_flush_reclaimSL-3TP-17141.37723.8%2.813.78-22.251
122b_reversal_SL-3_TP-62b_reversalSL-3TP-67911.3041.8%2.330.42-234.496
132b_reversal_SL-3_TP-12b_reversalSL-3TP-17911.28124.9%2.713.60-21.541
143bar_flush_reclaim_SL-4_TP-63bar_flush_reclaimSL-4TP-67141.3393.9%2.400.41-107.2810
152b_reversal_SL-3_TP-22b_reversalSL-3TP-27911.25222.6%2.623.39-20.271
16bullish_engulfing_SL-3_TP-1bullish_engulfingSL-3TP-15171.52924.8%3.032.39-20.711
17bullish_engulfing_SL-3_TP-2bullish_engulfingSL-3TP-25171.50922.4%2.952.29-20.711
182b_reversal_SL-3_TP-32b_reversalSL-3TP-37911.21018.1%2.482.96-28.611
192b_reversal_SL-3_TP-72b_reversalSL-3TP-77911.19712.6%2.372.33-53.002
202b_reversal_SL-3_TP-42b_reversalSL-3TP-47911.17724.9%2.571.79-33.572

Best Config Per Pattern

bullish_engulfing

  • Best config: bullish_engulfing_SL-3_TP-6
  • SL: SL-3 (fixed_1pct)
  • TP: TP-6 (structure_break)
  • Trades: 517 (IS: 357, OOS: 160)
  • Expectancy: 3.453R (IS: 2.547, OOS: 5.473)
  • Win rate: 3.5%
  • Profit factor: 4.58
  • Sharpe: 0.54
  • Max DD: -103.00R

outside_reversal

  • Best config: outside_reversal_SL-3_TP-6
  • SL: SL-3 (fixed_1pct)
  • TP: TP-6 (structure_break)
  • Trades: 362 (IS: 247, OOS: 115)
  • Expectancy: 1.253R (IS: 0.537, OOS: 2.789)
  • Win rate: 2.5%
  • Profit factor: 2.29
  • Sharpe: 0.46
  • Max DD: -132.27R

2b_reversal

  • Best config: 2b_reversal_SL-3_TP-6
  • SL: SL-3 (fixed_1pct)
  • TP: TP-6 (structure_break)
  • Trades: 791 (IS: 570, OOS: 221)
  • Expectancy: 1.304R (IS: 1.596, OOS: 0.553)
  • Win rate: 1.8%
  • Profit factor: 2.33
  • Sharpe: 0.42
  • Max DD: -234.49R

3bar_flush_reclaim

  • Best config: 3bar_flush_reclaim_SL-3_TP-6
  • SL: SL-3 (fixed_1pct)
  • TP: TP-6 (structure_break)
  • Trades: 714 (IS: 502, OOS: 212)
  • Expectancy: 3.013R (IS: 3.379, OOS: 2.145)
  • Win rate: 3.2%
  • Profit factor: 4.11
  • Sharpe: 0.54
  • Max DD: -89.00R

Stop-Loss Variant Comparison (averaged across patterns & TPs)

SLNameAvg Exp(R)Avg WRAvg PFAvg MaxDD(R)Total Trades
SL-1pattern_low_intraday0.28020.7%1.36-54.4216688
SL-2close_based0.26425.9%1.25-83.0216688
SL-3fixed_1pct1.49916.1%2.78-48.2216688
SL-4fixed_2pct0.55715.7%1.66-53.5016688
SL-5atr_buffer0.15323.2%1.21-41.5916688
SL-6swing_low_20bar0.27622.8%1.38-49.0616688

Exit Variant Comparison (averaged across patterns & SLs)

TPNameAvg Exp(R)Avg WRAvg PFAvg MaxDD(R)Total Trades
TP-12R_fixed0.40428.8%1.53-34.9114304
TP-23R_fixed0.41023.9%1.52-39.0214304
TP-35R_fixed0.43219.0%1.52-45.2414304
TP-4partial_runner0.47828.8%1.63-39.4214304
TP-5trailing_only0.55821.5%1.66-56.9714304
TP-6structure_break0.6928.6%1.74-115.7414304
TP-7wide_10R0.56014.5%1.63-53.4814304

Key Risk-Management Lessons

  1. Best stop-loss variant: SL-3 (fixed_1pct) with avg expectancy 1.499R
  2. Worst stop-loss variant: SL-5 (atr_buffer) with avg expectancy 0.153R
  3. Best exit variant: TP-6 (structure_break) with avg expectancy 0.692R
  4. Tight fixed stops (SL-3/4) avg WR: 15.9%, Structural stops (SL-1/5/6) avg WR: 22.2%
  5. Tight fixed stops avg exp: 1.028R, Structural stops avg exp: 0.236R
  6. IS/OOS consistency: Correlation of IS vs OOS expectancy: 0.61 (n=168 configs with sufficient trades)

Hypothesis Check

H: Reversal entries with structural stops produce PF >= 1.8, Exp >= 0.5R, lower max DD.

  • Configs with PF >= 1.8: 41 / 168
  • Configs with Exp >= 0.5R: 58 / 168
  • Configs meeting both: 41 / 168
  • Best meeting both: 3bar_flush_reclaim_SL-3_TP-6