This strategy is based on the fundamental principle that the Equities markets are inherently bullish by nature. They follow some of the basic trading concepts that are found in any educational material about trading: Add to winning positions, cut losing positions, and long the pullbacks. At the heart of the strategy that is it, but with many layers of advanced coding on top of it for choosing which days to trade with an advanced day filtering system and monitoring for pullback conditions. It always starts small with a single Micro contract then monitors its performance and managing the position. It has some very advanced logic in the script for determining when a positions movement has ‘stalled out’ and exiting the position to lock in profits. Also in use are a set of static conditions that will trigger position exits, as well loss control. This strategy also features a Manual Stop-loss function that allows the person running it to be able to manually adjust a total position stop loss level to their comfort. Since the core idea of this strategy is just to be a bull in bull markets, thus the name: Stupid Simple.
In the image above is the back test results from 1/1/23 until 12/31/23, showing one years historical Cumulative Net Profit. Since 2023 was a very bullish year for the Nasdaq, you can see how this strategy performed very well under those conditions. To the left is a summary of that performance data. Again this strategy only works in bull markets since that is at the core of it. Also, it does not trade every day, since part of its success is identifying the best conditions for it to run. You can see in this statistics panel how there was a 20 day flat period where it did not take a single trade.
To be able to properly use this strategy an account would need at least 15k in cash assets to be able to handle the possible positions sizes it can reach. It has a limit of 100 contracts possible to a position, albeit in testing it rarely got near that. If one wanted to run this using account provided by online Prop Firms I would suggest using 100k or 150k End Of Day type account. Again, check position size limits.
Here we have the Net Cumulative Profit for a 3 month recent period, from 11/1/23 until 1/31/24. Showing a more recent and smaller time frame example of performance. And on the left is again the statistical information for this period.
