Live Backtest Results
This corrected backtest analyzes the BTC Dragonfly Doji strategy over the 1 hour timeframe. The exact Strategy Prompt below defines the corrected executable configuration, including its entry and exit rules and the selected backtest window.
ROI
-33.97%
Win Rate
54.39%
Max DD
85.61%
Sharpe
0.18
Profit Factor
0.96
Total Trades
706
Backtest insights
The Dragonfly Doji strategy generated a total return of -33.97% over the 1 hour timeframe. With a maximum drawdown of 85.61% and a win rate of 54.39% across 706 trades, the corrected backtest ran from 2017-01-01 to 2026-03-31. The selected strategy version and backtest identifiers are recorded in the configuration below.
Performance may vary depending on market conditions. During trending periods, the strategy may behave differently compared to ranging markets, impacting both returns and drawdowns.
How the Dragonfly Doji Strategy Works
What It Is
The Dragonfly Doji candle pattern has a long lower shadow and a close near the high, showing rejection of lower prices. This test uses the Dragonfly Doji as the long trigger and a Bearish Engulfing pattern as the exit reference. The page reports a real CoinQuant backtest on BTC/USDT 1 hour data.
How Signals Are Generated
The corrected configuration is defined by the exact Strategy Prompt below. It uses the selected 1 hour timeframe and runs from 2017-01-01 to 2026-03-31.
Strategy Prompt
Long-only BTCUSDT on the 1h bars timeframe. Define a lower-wick reversal setup using the Long Lower Shadow candle-pattern component. Its explicit OHLC geometry is a doji-like small body, with Open and Close nearly equal and both near the High, a lower shadow that is long, and an upper shadow that is minimal. Apply these thresholds: body at most 25% of High minus Low, both Open and Close in the highest 35% of the range, lower shadow at least 50% of the range, and upper shadow at most 20% of the range. This is not a generic Doji. Enter long after bullish confirmation when Close crosses above the setup bar High within the next 10 bars. Exit long when a Bearish Engulfing candle pattern is detected. Use an explicit backtest date range from 2017-01-01 to 2026-03-31.
When It Works Best
This strategy tends to work best when downside rejection is followed by sustained buying pressure rather than another selloff. The 1 hour timeframe captures a distinct market rhythm, so the same indicator can behave differently across horizons.
When It Performs Poorly
The strategy struggles when Dragonfly Doji candles appear during weak bounces inside broader downtrends. A lower,shadow rejection can fail if follow,through buying does not arrive.
Strengths
Tests a bullish rejection candle pattern
Uses a simple and auditable long,only rule
Works across the standard 19 timeframe grid
Limitations
A Dragonfly Doji needs context to confirm reversal quality
Bearish follow,through can appear quickly after failed bounces
Sparse signals on higher timeframes may limit sample size
Why Use CoinQuant Instead of Manual Trading or Other Platforms
Choosing the right way to test and execute trading strategies is critical. Below is a comparison between CoinQuant, manual trading, and other platforms to highlight key differences in speed, accuracy, and usability.
CoinQuant is designed specifically for traders who want to validate strategies quickly and reliably without coding. Unlike manual trading or traditional platforms, it allows you to test multiple scenarios, analyze performance instantly, and iterate faster using real data.
Frequently asked questions
How does the Dragonfly Doji strategy perform on BTC/USDT in the 1 hour timeframe?
In this corrected backtest, the Dragonfly Doji strategy on the 1 hour timeframe generated a return of -33.97% with a maximum drawdown of 85.61% and a win rate of 54.39% across 706 trades. These results are based on historical backtest data and actual performance may vary.
What is the Dragonfly Doji indicator?
The Dragonfly Doji candle pattern has a long lower shadow and a close near the high, showing rejection of lower prices. This test uses the Dragonfly Doji as the long trigger and a Bearish Engulfing pattern as the exit reference.
Why is backtesting important for trading strategies?
Backtesting evaluates how a strategy would have performed on historical data before risking real capital. It reveals metrics like ROI, drawdown, and win rate that show whether a strategy has a genuine edge.
How can I test the Dragonfly Doji strategy on CoinQuant?
Paste the exact strategy prompt from this page into CoinQuant, select BTC/USDT and the 1 hour timeframe, and CoinQuant generates a full backtest with performance metrics, no coding required.
What are the best settings for the Dragonfly Doji strategy on the 1 hour timeframe?
Optimal settings depend on the indicator parameters, timeframe, market regime, and trading objective. The default tested here is the exact rule shown in the strategy prompt. CoinQuant lets you test parameter variations to find the best fit for the 1 hour timeframe.