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.

