Initial Range Breakout Trading System: Back testing Results & Thoughts

Hey traders! I’ve been testing an **Initial Range Breakout (IB Breakout)** strategy and wanted to share the results, system rules, and thoughts with the community to see what you guys think. Here's everything about the system, back tested results, and how it performed. # System Overview This is an Initial Range Breakout (IB Breakout) trading system designed to capitalize on price momentum outside the initial range. The rules are simple but effective: 1. **Initial Range (IB)**: The first range of the day is marked based on price action in the opening minutes of the session. 2. **Criteria for Entry**: * The **Initial Range (IB)** must be less than 60% of the 10-day ATR. * If a 2-minute candle **closes above the IB high** (for a long trade) or **below the IB low** (for a short trade), we enter. 3. **Stop Loss & Target**: * **Stop Loss (SL)**: A trailing stop loss (TSL) of 0.3%. * **Target**: 50% of the IB range level. # Back test Results I back tested this strategy on both **Sensex** and **Nifty 50**, and here are the results: 1. **Sensex (First Image)**: * **Net Profit**: ₹26,937.68 (89.79%) * **Total Trades**: 83 * **Win Rate**: 68.67% * **Profit Factor**: 1.578 * **Max Drawdown**: ₹7,051.19 (18.08%) * **Average Trade**: ₹324.55 (0.04%) 2. **Nifty 50 (Second Image)**: * **Net Profit**: ₹64,409.50 (214.70%) * **Total Trades**: 85 * **Win Rate**: 67.06% * **Profit Factor**: 1.633 * **Max Drawdown**: ₹14,249.15 (40.11%) * **Average Trade**: ₹757.76 (0.04%) # My Thoughts After analyzing the results, the strategy gave an **overall score of 7.5** (based on ChatGPT's analysis). The results seem promising, especially on Nifty, where the net profit and profitability are significantly higher than Sensex. However, there are a few things to consider: * The **max drawdown** on Nifty is high at 40.11%, which might be risky for some traders. * The **average trade** is relatively small, which means this strategy would require consistency and discipline to follow through. * The **profit factor** of 1.5–1.6 is decent but could be better with optimization. # What Do You Think? Does this system look trustworthy to you? I think it has potential with some refinements, but I'd love to hear feedback from the community. Have any of you tried similar breakout systems, or do you have suggestions for improvements?