Walking into the extreme volatility we have been seeing im wondering if there are many here that have had systems break on you?

So far it seems like its only 1 so far that has gone crazy. Luckily I managed to stop it when i saw the 2 big drops happen in equity curve , which of course happened just days after activating it..

The algo tries to enter when market is about to break up towards a new high, but if market does a big move up but instantly drops this is gonna cause fake signals and the algo will buy every single time. With low volatility the algo looked good, but with the crazy volatility i saw the algo do 4-5 losing trades in 1 day hitting stop loss every time, causing the “huge” drops in equity curve, i realized that no matter how the algo would perform in the future, this is not the right type of algo for me. It caused slight panic both times seing it go into 4-5 trades very quick one after one and hit stop every time. It managed february well, but the volatility and choppy stuff after the drop killed this one.

I feel very lucky that i quit this when i did and i missed out on the crazy drawdown. I have a fixed amount of € for each algo and when the limit is done, the algo is done as well. This was about 50% towards that limit.

I also want to point out a very important point: Another obvious point to why this algo stopped in my opinion is curvefitting. This was created before i developed my process for designing new algos in the hopes of minimizing the risk of overfitting strategies, which i have described in another post. This is potentially overfit and the huge recent drop would certainly speak towards that. Who knows how this equity curve looks in 10 years time lol. Might do fantastic as soon as things settle down, might continue down to 0. Im not gonna stick around with real money to see hehe.

System is for US tech 100 (nasdaq futures) 1€ CFD contracts.

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