marginsyndicate.co.uk

1. Overview – Fully Autonomous, Dual-Sided Execution

  • This backtest evaluates the DCA system as a fully hedged strategy, integrating long & short execution.
  • Both long and short systems run autonomously, ensuring continuous risk-managed execution without manual intervention.
  • This approach allows for profitability in all market conditions, mitigating directional exposure while optimizing returns.

2. Backtest Results – Long & Short Performance

  • Long-Only System (LDO Backtest)
    ✅ Zero realized drawdown, despite LDO’s volatile price action.
    ✅ Generates consistent profit, compounding steadily over time.
    ✅ Long-only structure reduces exposure to short-term liquidations.
  • Short-Only System (LDO Short Backtest)
    Autonomous execution of short trades, contributing to 2.82% net profit in the test period.
    ✅ Acts as a natural hedge, countering long-side drawdowns.
    ✅ With optimizations, profitability can double while reducing exposure.

3. Key Optimizations to Improve Performance

  • Enhancements to Short Execution
    Enter on divergences to improve entry efficiency.
    Avoid shorting parabolic trends, reducing open drawdown.
    More structured exits, optimizing risk/reward.
  • Hedge Strategy Considerations
    Zignaly accounts are already in hedge mode, allowing seamless execution.
    ✅ If your exchange does not support hedge mode:
    • Option 1: Provide a secondary account for short-side execution.
    • Option 2: Run only long strategies while maintaining structured risk exposure.

4. Final Takeaways

  • This fully hedged system offers a balanced, low-risk trading solution, capturing upside while limiting drawdowns.
  • Full automation means uninterrupted execution, even in adverse market conditions.
  • The system remains transparent, sustainable, and structured, prioritizing consistent, risk-adjusted returns over reckless speculation.