I review a modern version of the trading system created by Hungarian Economist Nicolas Darvas. His book “How I made $2 Million in the Stock Market”, which features his Darvas Box trading system, was subject of a criminal investigation. I go over the details of this complete trading system, test it 100 times, review the results, give it a score, and then provide my popular optimization techniques.
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🏠 System Web page: https://traderslanding.net/2021/11/12/49/
🔍 Link to my Testing Performance Spreadsheet: https://traderslanding.net/results/
📘 Link to my free backtesting spreadsheet: https://traderslanding.net/2021/08/15/26/
⏱️ Timestamps ⏱️
00:00 – Start
01:01 – Indicators
01:52 – Long Examples
03:16 – Short Examples
04:40 – Testing Results & Equity Curve
05:40 – Trader’s Landing Score
06:03 – Optimization
⚙️ System Specifics ⚙️
📛 System Name: Dancing on the Box
🏆 Trader’s Landing Score: 6
🎹 Instrument: Bitcoin vs. Euro (BTC/EUR)
⌛ Time Frame: 1-Hour (H1)
👀 TradingView Indicators
Name: MavilimW
Inputs: Default
Style: Color 0 – Blue, Color 1 – Blue
By: KivancOzbilgic
Link: https://www.tradingview.com/script/5kepc9Mz/
Name: Darvas Box
Inputs: Default
Style: Default
By: KivancOzbilgic
Link: https://www.tradingview.com/v/cRqNbBLU/
☝️ Long Entry
- Price is above the MavilimW.
- Price closes above the Darvas Box.
👇 Short Entry
- Price is below the MavilimW.
- Price closes below the Darvas Box.
🔥 Risk to Reward: 1:1 & 1:2
🛑 Where to place stop-loss:
For Longs: At lower Darvas Box.
For Shorts: At upper Darvas Box.
🚀 Where to take profits: 50% @ 1:1 when 1:1 is hit, move stop to break even and target 1:2.
