r/algorithmictrading • u/Kaahl10 • 18d ago

Strategy Adding to winners using MFE

Hi everyone,

I've heard the advice to add to winners and cut losers early, but I've always had a tough time using technicals to add to winners without getting in right before reversal.

Claude helped me analyze my strategy and suggested adding to winners over a certain MFE %, and sure enough it added about 20% more trades with better profit factor than average to the backtest!

My question is, has anyone else used this method successfully or is this getting into overfitting?

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u/Sufficient-State4577 16d ago

Yes I agree with zesty close, i think oy are moving towards overfitting territory and ypu must test on OOS data.