Live Backtest Results
This corrected backtest analyzes the BTC Dragonfly Doji strategy over the 1 month timeframe. The exact Strategy Prompt below defines the corrected executable configuration, including its entry and exit rules and the selected backtest window.
ROI
848.64%
Win Rate
100.00%
Max DD
73.01%
Sharpe
0.72
Profit Factor
N/A
Total Trades
1
Backtest insights
The Dragonfly Doji strategy generated a total return of 848.64% over the 1 month timeframe. With a maximum drawdown of 73.01% and a win rate of 100.00% across 1 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 month data.
How Signals Are Generated
The corrected configuration is defined by the exact Strategy Prompt below. It uses the selected 1 month timeframe and runs from 2017-01-01 to 2026-03-31.
Strategy Prompt
Long-only BTCUSDT on the 1M bars timeframe. This is a detector-free raw OHLC strategy. For ENTRY, use only explicit raw High, Low, Open, and Close comparison conditions. Do not use any named entry candlestick component, generic Doji, FuzzyCandlesticks, Long Lower Shadow, Long Upper Shadow, Hammer, or an indicator. Compile every entry condition as comparisons among High, Low, Open, and Close plus the stated percentage tolerance. Keep the exit exactly: exit long when a Bearish Engulfing candle pattern is detected. Dragonfly geometry at the current monthly bar: (1) the Open-Close body is small: Open and Close are within 10% of each other; (2) the body is near the High: High is no more than 10% above both Open and Close; (3) the Low is materially below the body: Low is at least 8% below both Open and Close; (4) the upper shadow is minimal, restated as High no more than 10% above max(Open, Close). Enter long directly at the close of every qualifying candle. Use explicit backtest dates 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 month 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 month timeframe?
In this corrected backtest, the Dragonfly Doji strategy on the 1 month timeframe generated a return of 848.64% with a maximum drawdown of 73.01% and a win rate of 100.00% across 1 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 month 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 month 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 month timeframe.