[00:01] a trading strategy, you test it, and you find this. Profit Factor 2.4, you find this. Profit Factor 2.4, Drawdown 8%, 4 years of history. You put it in real, very good. The second one starts to fail. The third one was an [00:15] absolute disaster, it lost everything and you don't understand why if the backtest was perfect. This happens to 90% of traders and it's not their fault. The problem is that they don't know the difference between a strategy that seems profitable and one [00:28] going to show you the entire process of a real strategy. You'll see the results on screen, what metrics it has, how it's validated, and why it holds up in real-world use. And if you're not following me yet, do it now because I upload [00:43] artificial intelligence every week. Before we get into the process of creating our profitable strategy, I want to show you the problem that no one explains to you. You're probably familiar with the idea of starting to see which indicator works best to find the best signals and [00:57] said it when we started in this field, including me. But this has a problem that I will now explain to you. What people usually do is create their strategy based on what they see in the charts. The back [01:12] that is, it goes tweaking those little things to see an incredible back test. [clears throat] The more incredible you see the backtest, that the backtest is the strategy historically, is when we say, "Wow, I'm going to make a [01:26] We ran it for the first time on our trading account and it only makes us lose money. And you say, "How can this be possible if I've found something that has repeatedly worked in the past and now you're going to tell me it doesn't?" Well, this [01:39] has a name, ladies and gentlemen, it's called overfeiting. And I'm going to explain it to you very clearly. Imagine that you have used the years from 2020 to 2023 used the years from 2020 to 2023 to [01:53] build your strategy. Imagine that today is January 2023, you have used 2020, 21 and 22. For 3 years you have been looking at the charts of those 3 years and you have designed a strategy with the same indicators, same combinations, everything that [02:08] goes perfectly and gives you these results in green upwards. You say, he never loses this, right? Well, when you start trading it, in 2023, 2024, it's constantly going down. Is it possible that this could happen? Of course [02:22] . And this is what I'm telling you, it 's overfitting. In other words, we wanted to do something that worked very well for a period of time, but that won't work anymore because you've adjusted the dress only for that [02:34] adjusted the dress only for that mannequin and you need to make a dress that works on many mannequins. Okay, these would be the volatility increases or decreases depending on the asset being [02:47] traded. It's called Sample, the period we take to create our strategy, and we must reserve a time called auto sample to test that created strategy in some virgin years that we haven't used to see the [03:01] result of that strategy. This is a very simple and basic technique if you want to create your first trading strategy and make it truly profitable. The problem here is not the indicators you used to create [03:14] overfeiting. No no. The problem isn't that, nor the stop loss, nor the profit stop, nor whether you've used a trailing stop. No no. All of this is good. All of this can be used to create profitable strategies using these types of indicators that you could [03:26] have chosen. But the problem here is the process. It is in the process of that creation that everyone gets lost. Nobody paid any attention to the process. the problem. That's why only a few of us are profitable in the [03:39] financial markets. The first step is to generate using statistical criteria, always rely on statistics and have everything well measured. The second step is to perform the validation test. Outside of the sample, it's basic. And the third is to [03:51] perform robustness or stability tests. We won't cover this third step in steps one and two, which you'll learn in this video in a very simple way, you'll have your first profitable strategies. And then I'll [04:04] third one. What comes next is very important because now you can make two decisions. Path A is to go back to the charts and find your strategy so on. As long as you leave room to test what you've built, don't [04:20] test it on your real account, but leave a period of time to test it. Or two, use artificial intelligence tools that search for those repetitive patterns for you, which is what I've been doing for over 6 years. And [04:34] this is what I'm going to show you now, path B. This tool is called Strategy Quant and you can download it from its own website, a free going to show you in this video. You can find it below in my description [04:47] in the links so you can download that free license, the some point you want the paid license, there's a discount there too installed—and I recommend you install the ZIP package—don't install [05:01] the installer, okay? Once you have it installed, you will see this directly to build, which is the builder, the strategy builder. Okay, what we're going to use here in this module is to have the machine [05:16] find those repetitive patterns. In other words, the time we would spend looking at the charts to see if the RSI or ATR indicator He does this for us; we don't have to do it [05:29] ourselves, and that's what's interesting. The only thing is that it needs to be configured. I'm going to configure it to find strategies for the USDJP go directly to Full Settings and it tells me what to build. So let's get down to [05:45] simple strategy. I'm only going to look for long ones. I'm one of those people who has one strategy just for buying and another for selling. Everyone will have their own opinion. In which I will tell you the entry rules. I want you to pick one to [05:59] entry rules. I want you to pick one to three indicators or behaviors to three indicators or behaviors to give the entry signal. Good. And exit signs. I don't use indicators, I use stop loss, profit stop, and [06:11] other things that you'll see now. And everything else, which is below, number of exit type, that is, number of ways you can exit a trade, it can be by profit, stop loss, training stop, each of these counts as one. When [06:24] I set a maximum, I'm going to leave a maximum of three, okay? In stoploss we configure the stoplos. I want a stoploss, yes, a stoploss is mandatory. Okay, I'm going to set some fixed pip stop-losses, right? Because the [06:36] market is very volatile, therefore, there are days when the stop loss has to be tools based on ATR, which is the volatility indicator. The more volatility there is, the more stop-los it will allow me to set, and it will allow it with these [06:49] parameters. The same applies to take profit, exactly the same as to stop losses. Note mandatory here, but as optional, and I will leave it as this, this optional choice for the tool to choose or not . OK? I'm going to save it. [07:05] I'm going to data and here in data I'm going to tell it to generate strategies for Metatrader 5. Here you can select a series of engines and the symbol, as I said, I'm going to look for USDJPI. Here it is, I [07:18] in Data Manager. You can find other videos on my channel where I explain how to do this. OK? Time frame of one hour. I will always work in AC 1. And pay attention to the DAT here. I'm going to set it from 2018 until [07:33] mid-2025. Okay, it's 2026. I'm going to reserve it for Okay, it's 2026. I'm going to reserve it for almost a year later. Ramón, this is auto-sampling, right? This is a period of time that I reserve for myself at the very end [07:47] . It is not for auto sampling. Auto sampling will be from 2012 to 2018. going to put the auto-amplifier at the beginning, not at the end. You can do it however you [07:59] . One year in sample, another auto sample, another in sample, another auto sample. Others do the auto-sample. In the end there's no surefire way, but this is how I doing it this way for a while. OK? I'm going to set this to run quickly because we don't [08:13] need it to run at one minute per minute. I'm going to work H1. And in commissions I'm going to put six in the ones also by commission, okay? For each batch that opens. This has to be done really well because otherwise we [08:26] could mess things up here. Uh, trading options, I set it so that it doesn't enter between Uh, trading options, I set it so that it doesn't enter between 11:30 at night, Because the speeches are very long, I don't want them to fit in there. And [08:40] finally, or almost finally, the building blocks, which are basically the indicators or patterns that I'm going to give the tool so that it starts looking for combinations. I am in favor of including them all or almost [08:54] favor of including them all or almost all. This way I don't bias the tool according to my own opinion. OK? Then you can deselect some indicators that you don't like, but for now I'm going [09:06] to select them all. Types of orders. This is important. Do you want strategies that enter the market when the signals are given ? Do you want strategies that open a by stop in this case, that is, that when the signal is given, a by stop opens and [09:19] trade, and if not, it won't? [music] And I like working on the USDJP stop. I usually get interesting things and ways to limit myself, which would be below in terms of purchases and types of exits. You can exit after a [09:34] while, that is, exit after bars, which I'm going to use for, that is, the use column is to give it to the tool so that it can pick it up and required you force a tool to pick it up, okay? [09:46] Therefore, I will call the required, or mandatory, stop loss, and the optional one can be a profit target, a trigger stop, an activation, or that it comes out after trigger stop, an activation, or that it comes out after x bars or candles. I'll [09:59] leave everything else the same. Money management, I'm going to say that in a capital of 1 million, I'm going to say 100,000, I risk 1000, that is, 1%, but I will always risk 1000, right? As my [10:11] capital grows, I risk 1%, no. Always 1000, even if I go up to the capital. I like to work this way because I can quantify it better. Then, in my real accounts, I will increase the risk when I want. Decimals two. CFC blocks typically [10:23] have two decimal places. If for some reason it makes a calculation error, for some reason it makes a calculation error, open it to a batch, yes, open it to most open 1000 batches. It's not going to reach 1000 lots, I'm telling you. And [10:37] then to finish the ranking, the rankings tab, what filters are interesting to me? Okay, first of all, you have to select all the automatic filters , it's very important. I'm going to put that we're going to let it [10:52] stop when the databank... In other words, what this tool is going to do is and when they meet the filters, it's going to put them in a little bag, in a data bank. The Can you see that [clearing my throat] is now at zero? Well, in a while it's going to be [11:07] what do those strategies have to do? Apart from the automatic filters, which are basically filters for "no trades," "too many trades open in the same candle," and other strange things, we would say weird filters. Let's put the [11:20] logical filters in now. That is, that it has made more than 300 trades, and that the return-to- drawdown ratio is greater than four. This basically means that during this time period from 2018 to 2025 I have earned four times more [11:35] money than the maximum loss I had at that time. In other words, what I lost I recovered four times over in four. And the winning percentage, that is, the percentage of winners, must be at least 30%. Okay, I do [11:49] too high or too low. I think it will be fine. I think it's too low. I could increase it more, but this way my bag will fill up, the dataman will fill up faster. Okay, I'm going to [12:01] work with 100 strategies. I want that when I reach 100 strategies meeting this ratio, these three ratios for the process. OK? So now I'm going to progress, I'm going to open this so we can see how it [12:15] fills up and I'm going to start it. Good. From here on out, things are going to start getting crowded. Look, the first ones are already filling up crowded. Look, the first ones are already filling up . 22, 36, 50, 66, 79, 92, 100. [12:31] artificial intelligence has just done of 100 strategies that have been profitable from strategies that have been profitable from 2018 to mid-2025 is the work that you would have been spending months and months [music] and months [12:45] in Trading View, the charts of all these last years to find a single strategy, if you even find one. This found me 100 in a matter of This found me 100 in a matter of 10 seconds of my time. Just look at the [12:59] telling you that these 100 strategies will work on our real accounts; that's where the process comes in. In other words, here's what defines a trader who is truly profitable in the real markets and one who only [13:12] loses money. I repeat, it's the process, not the indicators I'm using. Therefore, this is what comes next. What do we do with these 100 strategies? Well, now you'll see. I'm going to copy all 100 of these strategies. [13:25] Right-click, copy, and I'm going to retest. We're going to do the first test, which is the sample-auto-sample test, which is the one I explained to you before. Okay, very simple. I'm going to paste it here . Here we have the 100. And now [13:38] I'll configure this section. I'm going to configure this section minimally now to do the first test, but you should know that many more tests are done here, or I personally do them . Let's configure the [13:50] auto sample insample. The data set is very simple , which is more or less the same as what we have seen so far, USDJPI, H1. Notice that I'm starting from USDJPI, H1. Notice that I'm starting from 2012 and closing until April 2026. [14:03] colors. Notice that the white color, the green color is the auto sample. This is stated by the Auto sample tool from January 2012 to December 2017, that is, just before the insample we used earlier to create it. And then the [14:17] last almost year, which is from July 2025 until a month ago, I've put it in blue, okay? Sample validation, which is something we will see visually. I'll tell you what this is for later, [14:30] but what we're interested in is the auto- sample here, okay? Okay, we'll leave this as is. 38 exactly the same. Money management, exactly the same as before. We're not going to make any crochet in this video. Ranking. What is [14:42] important about the ranking? The filters. Look, I already know that I'm starting filters we put in place before, so now it wouldn't make any sense to put the same filters in place again. What I told him is that the net profit of the inample, [14:56] that is, of the white part, what we had, what we created, if I multiply this by 03, that is, 30% of the net profit is less than what the autozamp earns me. Basically [music] that the green part earns me more than 30% [15:11] of what the white part has earned me, which is the champ. This is a filter, it 's not very demanding, okay? But it is true that the autochamp reminds me that I have it very early on, therefore the volatility of these last few years is [15:23] that in recent years more money can be earned than in 2012 using the same strategies. That's why. And what I've told him about the winning percentage is that the auto sample, the percentage of winners in the auto sample, should be greater than [15:39] 70%. In other words, if for example the winning percentage of a strategy was 40%, then what will 70% be if 10% is 4 12, then it shouldn't drop below 28% [15:52] win present during autotamp, okay? That it stays more or less close than that it doesn't see 10% of winners. I understand that if I see a 10% drop, it probably won't be profitable, so it will already fail me because of the first one, but I hope it [16:06] stabilizes, okay? A certain stability. Here we could include profifacts and other but for this video I'm going to keep it simple because this is already good, failed me, I'm just going to press play on this, okay? Start and [16:21] let's see how many fail me and how many pass me. This test is going to be very quick, just so the first strategies. It's preloading it first of all, here in Total Teste it will start putting one, two, look. One has passed me, one [16:37] has failed me, one has passed me, six have failed me, two, 10, 2. And after a few seconds all 100 will be finished. So here we have it, I have finished 100 strategies, of which 11 have failed me and 89 have passed me. [16:51] Look, it's a pretty high rate, as I said, I've put some filters in, then going to do in this video, and little by little those 89 will go down. I start with 1000, okay? But all this in due time. Let's see [17:05] here which ones have failed me. Filter results. Look, all of these have failed me. Look, look. Let's see, uh, for example, this one here. Let's look at the equity chart. Look, [17:19] look. The white part is what we have based the strategy on. went, which is what you would have done on TradingView, and look at the green part, how badly it went. Okay, this is what we want to avoid, this happening to us. [17:35] Therefore, we have tested a strategy from 2018 to mid-2025, we have implemented it since 2012 and it is disastrous. I'm going to give you the case of another one that has going to give you the case of another one that has had good profitability. [17:50] had good profitability. Look at this one here or this one. Look at this one here. Let's make it a little bigger. Look at say, this white piece has been used [18:02] to create it and it has also worked excellently in the green piece . And look at the last part, this strategy has also worked very, very well . Good. This is exactly what I like. This is what I like to see. In other words, out of [18:17] 89 options, which ones do we choose? Because we're not going to use 90 different strategies on the same different ones to diversify your strategies, but not all of them. So, what do I do when they pass all the tests? I pay close attention to what he has done this [18:31] past year. Okay, so you know that once you select a strategy, you go to source code, here you select Metatrader 5, which is what we have generated, and you click save. And this is the trading robot of the strategy [18:45] used. And you're left speechless because you say, "Rabón, you haven't mentioned the indicators he uses at any point." But we can check it, right? Let's move on to I can see more or less here. This is easy to read. Entry signals. Look, [18:59] use BS power. The parameters for the periods are shown up here. If the B power Power is below the MACD for three bars, it links it to two. Open a long position on the LWMA, [19:17] which is like a moving average that pops up out there. In other words, it places the order on a moving average that is in the middle. Interesting. To me, honestly, and this may shock people and it does shock many people, I don't care if you use one [19:29] another one. This one here, for example, this one here uses, look, the true range is below the ATR for three bars and places a buy order at a [19:47] same as going to another one that uses the baby power, it's below the vortex and places a level, this one does use the same place, the same level, but well, the point is, for example, this is a very similar [20:02] indicator that compares against another indicator with a different period. The MTATR is above another MTR and places the order at the high of the last 12 candles, which is what [20:15] this is here, well, with its stop loss, trailing stop, and size, the size we we've risked 1000 per operation, each one of their own, and this is exported. I know this might seem a bit shocking, not knowing the [20:30] indicators they use, but mostly so that the ones I'm going to export are use the same indicators. if they choose one or the other. And this is what I [20:44] wanted to show you, the KPIs that I look at in those resulting strategies in order to decide which three I'm going to keep for my real accounts. And first of all is the split rod return, which I have already explained to you, [20:57] but I use this to compare against all the others that turn out to be successful after passing all the steps of our [music] robustness test. In other words, the higher the Rhodon return, the greater the reward [21:11] taking. Note, this does not mean that you will earn more money, but rather that based on the risk assumed over that entire period of time, it is the one that turns it around more times. Point number two is the profit factor, which is basically [21:26] the ratio of gross profits and gross losses, all mixed together in the same KPI. Above 1.3 is good, and this is shown in the tool's all these indicators, including the [21:38] down pro factory section and the others below. Above 1.3 is good, and above 1.5 is excellent. The third is the stagnation period, which is the maximum time that the entire strategy remains during the entire [21:51] backtesting period without winning or without setting a new maximum in your account balance. Well, because this is ultimately the time we're spending losing money. The shorter the stagnation period, the better the strategy. [22:03] Therefore, KI number one and KPI number 3 are two KPIs that serve to compare against the others. The two and the four are used to decide yes or no, but [22:15] individually. Point number four is the IS validation last year. bought against others. It's the last period of the blue one I showed you; it's the one I use to compare against the underlying asset. In other words, if I [22:29] the underlying asset. In other words, if I created that strategy for the USDJPI, what has the USDJPI done from July 2025 to today? It's been going up. If it's been going long strategy, then that strategy has to be like that and the [22:42] profitability has to be higher. If the USB JPI has fallen or has been trading expect it to go up, but at least I don't expect it to go down either; at least I'll try to preserve my capital as much as possible. Therefore, [22:55] I make that somewhat manual comparison by eye against the market and end up making my final decision. Everything you've seen today—the generation, the validation of autochampling in sample, the most relevant chapters—is part of the process [23:08] I use to create real strategies that work for me in my Trading Life accounts. But this has only been the surface. I have prepared a free documentary called Autrader, the last days of [23:21] manual trading, where I document the entire process in more detail of creating robustness tests, exactly my methodology that I use from beginning to end to generate profitable strategies and turn trading into a business that [23:34] generates a recurring and automated income. The event is free, you can find it description of this video. Simply register, leave me your name and information. Nothing else. If you found this video helpful, please give it a big [23:48] thumbs up, because this helps me understand if you liked it or not, and how I can improve my content. And subscribe if you don't want to miss new content about this. Ciao. Ciao. Tr.