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PROBLEM STATEMENT

Traditional momentum strategies, even when segmented into Buy (BPL) & Sell (SPL) Phases, faced limitations. While initial research using BT, ST, IB, and IS improved execution, it was evident that momentum-based models alone were not sufficient to ensure consistent performance. The challenge was to manage sluggish periods, reduce drawdowns, and create a structured, rule-based system that worked across different market conditions.

Proposed Solution

By integrating momentum time frame backing with system combinations, we aimed to:
✅ Reduce drawdowns by diversifying trade signals across multiple structures.
✅ Identify high-probability trades by leveraging time-based market correlations.
✅ Optimize capital allocation by trading a combination of mechanical strategies rather than a single method.

Findings & Results

📊 Breakthrough Insights Post BT/ST/IB/IS Testing:

• Momentum-based combinations outperformed individual systems.
• Sluggish periods (e.g., 2014-2016) became profitable due to optimized trade selection.
• Risk was better managed, though occasional big moves were missed.

Conclusion & Next Steps

This research laid the foundation for universal, rule-based trading frameworks where system combinations provide stability. The future focus is on enhancing adaptability, refining universal rules, and optimizing execution models to further increase profitability.

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Contact us at mechanicaltradingsystempg@gmail.com or call +91 90043 45609.