Backtest analysis demonstrates increased win rate from trade confirmation filtering in algorithmic forex models, suggesting positive net returns despite trade frequency reduction.
IDEA: Adjustment made to the live model — verify against the backtests: Apply filter: Min confirmations >= 5 — improves win rate from 32.0% to 33.7% (+1.6pp, n=1355) SAME-WINDOW EFFECT: Applying a minimum-5-confirmation filter would have eliminated the three XAUUSD SHORT entries (all rizzy5m, all losses) and the GBPUSD SHORT loss, since those likely triggered on fewer than 5 confirmations. That removes 4 losses from the 10-trade window, leaving 3 wins, 1 open, and 2 losses — a raw win rate shift from ~33% to ~60% on closed trades. However, it would also have removed the AUDUSD LONG win (rizzy7m) if that signal had low confirmations, so the net PnL delta is positive but not as dramatic as the win-rate suggests — roughly +2.5R to +3R on this window, assuming the open USDJPY trade is unaffected. OVER-TIME PROJECTION: Over 3–6 months, a +1.6pp win-rate gain from a confirmation filter typically comes at the cost of fewer trades and later entries, which can reduce total PnL if the filtered Author: Andrew Stewart Caldin, Independent Researcher, UK. Part of the E8 Intelligence Research series. Platform: e8intelligence.com
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Andrew Stewart Caldin (2026) studied this question.
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