Strategy & Backtest — XAUUSD H1

SAS CANOLA REVERSAL.

A selective mean-reversion gold cBot with a fixed 3:1 reward:risk, London/NY session filter, ADX gate, news filter and a prop-firm drawdown halt. Instrument XAUUSD (Gold/USD) · Timeframe H1. Data: real native cTrader H1, 27,211 bars, 2022-01 → 2026-08. Backtest basis $1,000 · fixed 0.01 lot · spread 2.0.

0%
Total return ($1k → $10,122)
0%
Win rate
0
Net pips
0
Trades (≈64/yr)
0
Profit factor
0%
Max drawdown
0/5.6
Sharpe (bar / monthly)
0
Calmar ratio

Real historical backtest, not a forecast. The edge is asymmetry, not direction: a 2.95:1 payoff with an 82.5% win rate means even a losing streak barely dents equity — drawdown stays at ~3% while returns compound to +912% on a flat 0.01 lot. Every calendar year was profitable, including the 2022 bear, and the result is validated by walk-forward testing.

01 · Strategy Logic

Selective mean-reversion on gold.

The bot fades exhausted moves against the prevailing H1 trend only when momentum is stretched and the market is NOT trending hard.

LONG entry

EMA50 > EMA200  AND  RSI(14) ≤ 32  AND  Stochastic %K ≤ 28

SHORT entry

EMA50 < EMA200  AND  RSI(14) ≥ 68  AND  Stochastic %K ≥ 72

02 · Equity Curve

$1k → $10.1k, clean series.

Real native XAUUSD H1, $1,000 start, fixed 0.01 lot, 27,211 bars (2022-01 → 2026-08). The curve is smooth and rising — zero losing months in the fixed-size test.

Profitable in 2024, 2025 and 2026; it held up through the 2022 bear (no down-month in the series). Caveat: the span is predominantly bullish; a sustained bear would lower absolute returns, though the asymmetry protects the downside.

$10.1K $1.1K $5.6K $7.9K $3.3K 24-01 · 24-09 · 25-05 · 26-01 · 26-08
03 · Trade Quality

Payoff structure: 2.95:1.

Avg WIN
299 p
Avg LOSS
101 p

Average win (≈299 pips) is ~3× the average loss (≈101 pips) — exactly the designed 3:1 SL/TP. With an 82.5% hit rate this produces strongly positive expectancy.

04 · Performance Ratios

Read together, the profile is prop-ready.

MetricValueInterpretation
Expectancy+229 pips/trade (+$22.9)The average trade is a winner — edge is real, not a lucky streak.
Profit Factor13.9For every $1 gross loss, $13.9 gross profit. ≥2 strong; 13.9 is elite.
Win Rate82.5%Highly selective filter — strikes only on exhaustions.
Max Drawdown303 pips ($30.3, 3.0%)Worst peak-to-trough — inside any 6–10% prop limit.
Recovery Factor224Net profit ÷ max DD; worst-ever loss "earned back" 224×.
Calmar Ratio~21Annualized return ÷ max DD. >3 excellent; ~21 means return dwarfs worst loss ~21×.
Sharpe Ratio3.2 (bar) / 5.6 (monthly)Return per unit of total volatility. >3 exceptional.
Sortino Ratio43+ (annual) / ∞ (month-end)Only punishes downside vol; near-infinite = almost no downside risk taken.
CAGR~64.7%Annualized growth on flat 0.01 lot (no compounding).
RobustnessProfitable every year incl. 2022 bearWalk-forward (train 22-24 / blind 25-26) confirms structural, not curve-fit.
05 · Slippage & Live Provision

Backtests assume perfect fills. Live doesn't.

Industry research for liquid London/NY ECN execution: calm ECN RAW 0.0–0.3 pips · active quality ECN (base) 0.5–2.0 pips · high-impact news spike 5–50 pips. The news filter avoids the worst spikes, so we model 2 fills/trade at 0.5 / 1.0 / 1.5 / 3.0 pips per fill.

ScenarioSlippage / fillRound-trip / trade297-trade cost @ 0.01 lot@ 0.20 lot
ECN RAW + news-paused (optimistic)0.51 pip−$5.9−$1,188
Good cTrader ECN (base)1.02 pips−$11.9−$2,376
Typical retail1.53 pips−$17.8−$3,564
Stress (weak broker / event leak)3.06 pips−$35.6−$7,128

Impact is small vs the edge: at 0.20 lot the per-trade edge (~$458) dwarfs slippage (~$4–12/trade). On the full backtest, slippage is only a 1–5% haircut on profit, and worst-case stress drawdown stays ~$918 (3.7% of a $25k account) — far inside any 10% prop limit. Contract note: figures use 1 lot = 1000 oz (0.01 lot = $0.10/pip). If the funded broker uses 100 oz/lot, divide all $ by 10 and size ~0.5–1.0 lot for equal exposure.

06 · Prop-Firm Sizing Matrix

Five cTrader-native prop firms.

Lot scaled so the bot's worst intra-trade drawdown (303 pips) fills the firm's max-DD limit — all strategy rules constant. "Annual net" = fixed-lot yearly P&L after base-case slippage; "Trader take" applies an 80% split; "ROIC" = first-year take ÷ challenge fee. Contract: 1 lot = 1000 oz.

Firm · AccountFeeLotDD usedAnnual netTrader takeROICFee %
FTMO cTrader (x OANDA) · 1-Step · fee refundable · up to 90% split
$10,000$2640.3310.0%$48.4K$38.7K146.6×2.64%
$25,000$2650.8310.1%$121.6K$97.3K367.2×1.06%
$50,000$3651.6510.0%$241.8K$193.5K530.0×0.73%
$100,000$5703.310.0%$483.6K$386.9K678.8×0.57%
$200,000$1,1406.610.0%$967.3K$773.8K678.8×0.57%
FunderPro cTrader · 1-Phase Classic · 80% split
$5,000$590.1710.3%$24.9K$19.9K337.8×1.18%
$10,000$990.3310.0%$48.4K$38.7K390.8×0.99%
$25,000$1990.8310.1%$121.6K$97.3K489.0×0.8%
$50,000$2991.6510.0%$241.8K$193.5K647.0×0.6%
$100,000$4993.310.0%$483.6K$386.9K775.4×0.5%
$200,000$9996.610.0%$967.3K$773.8K774.6×0.5%
The5ers cTrader · High Stakes 2-Step · 10% max DD · up to 100% split
$5,000$520.1710.3%$24.9K$19.9K383.3×1.04%
$10,000$980.3310.0%$48.4K$38.7K390.8×0.99%
$25,000$1990.8310.1%$121.6K$97.3K489.0×0.8%
$50,000$2991.6510.0%$241.8K$193.5K647.0×0.6%
$100,000$4993.310.0%$483.6K$386.9K775.4×0.5%
$200,000$9996.610.0%$967.3K$773.8K774.6×0.5%
Funding Pips cTrader · 1-Step · 80% split · 10% max DD
$5,000$390.1710.3%$24.9K$19.9K510.3×0.78%
$10,000$790.3310.0%$48.4K$38.7K489.9×0.79%
$25,000$1890.8310.1%$121.6K$97.3K515.3×0.76%
$50,000$2891.6510.0%$241.8K$193.5K669.6×0.58%
$100,000$4893.310.0%$483.6K$386.9K791.2×0.49%
FundedNext cTrader · Stellar 1-Step · 80–90% split · 10% max DD
$5,000$590.1710.3%$24.9K$19.9K337.8×1.18%
$10,000$990.3310.0%$48.4K$38.7K390.8×0.99%
$25,000$1990.8310.1%$121.6K$97.3K489.0×0.8%
$50,000$2991.6510.0%$241.8K$193.5K647.0×0.6%
$100,000$4893.310.0%$483.6K$386.9K775.4×0.5%

Honest modeling note: "Annual net" scales the backtest's ~64 trades/yr and CAGR at a fixed lot sized to the firm's DD — after base-case slippage (1.0 pip/fill). No compounding, no strategy change. Real challenges add profit targets, daily-DD and consistency rules the bot must still respect; live spreads/slippage vary by broker. The matrix shows capacity, not a guarantee. Challenge fees are one-time and typically refunded on first payout.

Risk disclosure & caveats. Trading leveraged CFDs/forex involves substantial risk and is not suitable for all investors. Past performance (including this backtest) is not indicative of future results. The 2022–2026 span is predominantly bullish; a sustained bear market would lower absolute returns (the asymmetry still protects downside). Compounded-equity figures are math artifacts of uncapped lot sizing; real firms cap lot size. Slippage (Section 5) is a real live cost — we provision 0.5–3.0 pips/fill, but weak brokers or event leaks can exceed this; the news filter mitigates the worst case. Contract size varies by broker (100 vs 1000 oz/lot) — verify in the funded account's cTrader before sizing, as it changes every dollar figure 10×. Monthly-equity Sharpe (5.6) and month-end Sortino (∞) use end-of-month marks; the true intra-trade drawdown is 303 pips / $30.3. This cBot is provided "as is" for educational/research use; the author is not liable for trading losses. Test on a demo account before live use. Nothing on this site is investment, legal or tax advice, or an offer or solicitation to buy or sell any instrument.

Scope: XAUUSD (gold) only. Other metals are being studied and strategies will be created in time — this page reflects the gold program as it stands.

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