Strategies
ADA Daily Multi-Week Trend Continuation Long-Only (BINANCE USD-M Futures, Daily, OHLCV-Only)
Outcome: Abandoned
AdaDailyMultiWeekTrendContinuationLong
Outcome Summary
AdaDailyMultiWeekTrendContinuationLong reached iteration 3 attempting to reuse the promoted BNB/BTC/Link daily trend-continuation template on ADA, with the entry deliberately decoupled from a fresh-high trigger to spread trades across history. Despite a headline +128% return, the backtest generated only 18 trades and a Sharpe of 0.577 whose confidence interval ran from -3.10 to 1.15, with roughly 97% of the return coming from a single 2021-03-17 bar and extreme kurtosis (673.7). The analyst abandoned it at the backtest-review gate before any optimization, concluding the concentration was not a tunable code artifact but ADA's lack of a genuine continuation edge outside the 2021 parabola — the same problem iteration 3's entry rewrite had already failed to solve. Later analyst, risk, and optimization stages were therefore never reached.
Hypothesis
Long-only ADA daily strategy on BINANCE USD-M futures. Same proven multi-week trend-continuation template as the landed BNB/BTC/Link daily versions — applied to ADA. ADA's already-promoted AdaVolumeAbsorptionBreakoutHardLocked (Sharpe 1.7318 at paper_stage) confirms ADA daily timeframe is verification-friendly and has clean continuation behavior. Single-instrument, OHLCV-only, single-condition entry, factory-approved instrument (ADAUSDT.BINANCE 1D).
Implementation
Long-only ADA daily (ADAUSDT.BINANCE USD-M futures, 1D, OHLCV-only) multi-week trend-continuation. Enters LONG on an established uptrend STATE — close above the 100-SMA and EMA30 above EMA80 — once a re-entry debounce of flat bars has elapsed since the last exit (replaces the old same-bar fresh-4-day-high conjunction). Exits on regime break (close below 100-SMA), an ATR trailing stop (2.5x ATR initial, trailed 4x ATR), or a 120-bar time stop. Sizing caps notional at 20% of equity and reduces it so risk to the initial ATR stop is <=1.5% of equity.
Backtest Review
- Sharpe
- 0.58
- Total return
- 128.44%
- Max drawdown
- 11.98%
- Trades
- 18
- Win rate
- 33.3%
- Profit factor
- 5.00
Clean, minimal, well-behaved implementation of a mechanism (multi-week trend continuation) that is validated on promoted BNB/BTC/Link daily siblings; low drawdown (12%), tiny fee drag (commission 0.27% of gross)
Correctly long-only with 0 shorts; positive nominal alpha and low beta (0.087)
Entire edge is a single day: 2021-03-17 = +96.97% vs total_return 128%; every other year is flat-to-negative (2020 -3.2, 2023 -1.7, 2024 +11.5, 2025 +1.6, 2022 no trades)
Extreme outlier-carried distribution: return_kurtosis 673.7, skew 25.6, tail_ratio 0.0069, largest_win $93.8k vs avg_win $23.5k, Sharpe only 0.577 with sharpe_ci_low -3.10 (CI far through 0) — the canonical deflated-Sharpe failure profile
Only 18 trades over 6.5 years — small sample that best-of-225 optimization would fit to the 2021 spike, not a robust edge
Iteration 3 already refactored the entry SPECIFICALLY to distribute trades and de-concentrate 2021, per prior analyst feedback, and it failed — the P&L is still one 2021 bar, so the code lever for this problem is exhausted
1 day = 97% of return
distributed
Analysis
Outcome Summary
A continuation mechanism validated on BNB/BTC/Link does not automatically transfer to ADA — outlier-carried, single-bar-dominated P&L is an asset-selectivity problem that entry-logic refactoring cannot fix, as iteration 3 already proved.
It was abandoned at the pre-optimization BACKTEST_REVIEW gate: the analyst returned an 'abandon' verdict because virtually the entire return came from a single 2021-03-17 bar (~97% of return) with every other year flat-to-negative, failing the total-trades, sharpe_ci_low, kurtosis, and outlier-concentration criteria; the analyst/risk stages and optimization were never reached.
A long-only ADA daily trend-continuation strategy on BINANCE USD-M futures that ports the promoted BNB/BTC/Link daily template — entering on a 30/80 EMA stack above the 100-SMA regime with a flat-bar re-entry debounce, and exiting on regime break, an ATR trailing stop, or a time stop.
The backtest over 721 data days produced a +128.44% total return with a Sharpe of 0.577 (CI low -3.10), profit factor 5.00, and 11.98% max drawdown, but across only 18 trades with a 33% win rate, return kurtosis of 673.7, and a largest win of $93.8k versus an average win of $23.5k.
Backtest and paper results are hypothetical. Trading involves risk of loss.