Backtesting the Homma Triple B UltraPro max:

Updated: 3/7/2023

Sakatas Homma

Jul 03, 2023

Here is the original post describing the HTB scan.

The Homma Triple B setup

Sakatas Homma

May 20, 2023

My Aspiring Peak Trader, I have been working on a setup that allows me to buy a breakout, before the obvious buy point. I wrote a scanner for exactly what I am looking at before I buy. I call the scanner my Homma Triple B scanner. In this article, I will explain to you:

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I have made a few modifications on this which I am going to explain you here:

I have added an additional condition of Supertrend. Price has to be above at least 1 of the 2 supertrend, ST10/2 or ST10/3.
This ensures that the stock is in an uptrned.
Entry: Although once can use the triple B hit to make an entry, there will be some instances when it will not work immediately. You will have to wait for 1-2 week in some case before it actually fires (and this is very frustrating in a raging Bull Market).
Worse even, it might come down and take you SL by undercutting the 21ema again.
Therefore rather than an entry signal, Triple B hits can be used as a confirmation of a good accumulation in the base. The entry could be a conventional Breakout entry (I will soon discuss about breakout confirmation signals in another article).
What this will do is that it will reduce the wait time and will put you in an instant profit if the breakout is successful.
Stoploss: If you now use the breakout as an entry, you can use the ST10/2 or ST10/3 as a Stoploss.

Backtesting data: data used for March - May 2023.

We performed a simple backtest of the scanner using the following conditions:

Entry on the Triple B signal
Stoploss = 0.5% below Supertrend 10/3
Exit 10%

Results:

Total trades: 996

Each buy: 10,000 rupees

win % = 65%

loss% = 35%

Average gain = 7% (700 rupees)

Average loss = -4% (-400 rupees)

Using these statistics, after 100 trades you will generate a return of around 25-26%.

(See the calculation below using the Monte Carlo simulator by Financila Wisdom):

See the backtested results here. https://docs.google.com/spreadsheets/d/14WYNU-Ij8Wo7YTPSKoaRinVXgStSUBHNJbVNZD2Rgm8/edit#gid=0

Therefore this system has a clear edge. I am further refining the entries and exits.

Thats all for now.

If you want to get paid access to the scanner (+ the tradingview indicator) please get in touch with me:

via whatsapp @: 9481506784

email: sakatashomma@gmail.com

The Technical Take

The Homma Triple B setup

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