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Strategy Parameters
            
            

              
Hover your mouse over each parameter description for help on that parameter.
            
            

              
Buy Strategy
              

                  Buy on Alert
				  Buy at Open
                
              
            
 
            

              
Sell Strategy
              

                  Trailing Stop Percent
				  Upper ATR
                
              
            
 
			
            

              
Start Date
              

                
            
            

              
End Date
              

                
            
            

              
Max. Hold Days
              

              
            
            

              
Transaction Cost
              
$
              
            
            

              
BoP Stop Loss %
              

                  None
                  1
                  2
                  3
                  4
                  5
                  6
                  7
                  8
                  9
                  10
                  11
                  12
                  13
                  14
                  15
                  16
                  17
                  18
                  19
                  20
                
            
            

              
Trailing Stop Loss %
              

                  None
                  1
                  2
                  3
                  4
                  5
                  6
                  7
                  8
                  9
                  10
                  11
                  12
                  13
                  14
                  15
                  16
                  17
                  18
                  19
                  20
                
            
            

              
Target Gain %
              

            
            
			
            

              
Sell at Open if Unconfirmed
              

                  Yes
                  No
                
              
            
            

              
Minimum BoP
              

            
			

              
Maximum BoP
              

            
             

              
Slippage Allowance
              

            
            

              
Minimum Volume
              

            
            

              
Min. Vol. to Adv Ratio
              

               e.g. 1.5
            
            

              
Confirmation Vol. Ratio
              

            
             

              
Model Predicts Close > BoP
              

				  Yes
				  No
				
            
            

              
Previous day Price and Volume Higher (Accumulation)
              

				  Yes
				  No
				
            
            

              
Buy Limit as % of BoP
              

            
            

              
Buy Stop as % of BoP
              

            
            
            

              
No. of Positions
              

                  1
                  2
                  3
                  4
                  5
                  6
                  7
                  8
                  9
                  10
                  11
                  12
                  13
                  14
                  15
                  16
                  17
                  18
                  19
                  20
                
            
            

              
Minimum RS Rank for Buy
              

            
            

              
Minimum CEF2 for Buy
              

                  0
                  0.1
                  0.2
                  0.3
                  0.4
                  0.5
                  0.6
                  0.7
                  0.8
                  0.9
                  1.0
                
            
            

              
Minimum CEF3 for Buy
              

                  0
                  0.1
                  0.2
                  0.3
                  0.4
                  0.5
                  0.6
                  0.7
                  0.8
                  0.9
                  1.0
                
            
            

              
Limit to stocks in this top percentile
              

              
            
            

              
Use Market Trend
              

                  Yes
                  No
                
              
            
			

              
Use TRS
              

                  Yes
                  No
                
              
            
			

              
Require Squeeze
              

                  Yes
                  No
                
              
            
            

              
Initial Portfolio Value
              
$10,000
            
            

              

                  
                
            
          
        
      
    

        

          

            
              Cup-with-Handle Breakout Backtest Tool
              
          
          

            
                  How to Use this Tool 

                
This tool allows you to do sensitivity analysis on cup-with-handle breakouts. By adjusting the parameters on the left, you can test how stocks with those parameters would have performed after breakout. For an explanation of each parameter, hover your mouse over the parameter name.
                
The tool uses our extensive database of all stocks that we identified as being in a cup-with-handle pattern back to 2004. The tool ignores our definition of a confirmed breakout (must meet or exceed the breakout price AND have a volume of at least 1.5 times average daily volume) and allows you to set your own minimum volume and volume level relative to adv for a confirmed breakout (you can't change the breakout price which is determined by our chart pattern methodology).
                
A breakout from a cup-with-handle watchlist does not guarantee that the stock in question will go on to make significant profits. There is a wide range of possible outcomes and the best we can do is weight the odds in our favor that a particular breakout will make significant gains. We do so by looking for the most promising stocks as they breakout and then by limiting our losses after taking a position. We have found through our research that the most promising stocks have high RS Rank values, have positive earnings in the last two quarters (CEF2) and have had accelerating earnings over the last four quarters (CEF3). 
                
Running the backtest over a long period of time can take a few minutes so we recommend that you first familiarize yourself with the tool by running over a short time frame - 12 months at the most. We also recommend that you become familiar with the content of the links shown below. 
                
As you run the tool, you will at first be surprised that taking a single position can provide the best returns. This is because more of your portfolio is invested for more of the time.
                
References:
                

                  
Cup-with-Handle Methodology
                  
Backtest Methodology
                  
                
              
            
          
        
    
  
  



  


  

    

      

        

          
Results 01/01/2017 to 2024-04-18
        
        

          
      

      

      

        


        
        
Strategy
        
S&P 500
        


        
        


        
        
Strategy
        
S&P 500
      
      

        
Initial Portfolio Value
        
$10,000.00
        
$10,000.00
        


        
        
Maximum Positions Filled
        


        
        
N/A
      
      

        
Final Portfolio Value
        
$0.00
        
$10,000.00
        


        
        
No. of wins
        
0          

        
        
N/A
      
      

        
Profit %
        
 %
        
 %
        


        
        
Avg. win %
        
 %
        
N/A
      
      

        
Avg. premium paid over breakout price
        
 %
        
N/A
        


        
        
No. of losses
        
0          

        
        
N/A
      
      

        
Maximum Portfolio Value
        
$0.00
        
$0.00
        


        
        
.. of which stopped out count
        
          

        
        
N/A
      
      

        
Maximum Gain %
        
 %
        
 %
        


        
        
Avg. Loss %
        
 %
        
N/A
      
      

        
Compound Annual  Return %
        
 %
        
 %
        


        
        
Win/Loss Ratio
        
          

        
        
N/A
      
      

        
Minimum Portfolio Value
        
$10,000.00
        
$10,000.00
        


        
        
Avg. Return per Trade
        
 %
        
N/A
      
      

        
Minimum Portfolio Value %
        
 %
        
 %
        


        
        
Avg. Days Held
        
          

        
        
N/A
      
      

        
Maximum Drawdown
        
$0.00
        
$0.00
        


        
        
Max. Consecutive Wins
        
0          

        
        
N/A
      
      

        
Maximum Drawdown %
        
 %
        
 %
        


        
        
Max. Consecutive Losses
        
0          

        
        
N/A
      
      

        
Risk Adjusted Return
        
          

        
        
          

        
        


        
        
Avg. % Capital Invested
        
 %
          
        
N/A
      
      

        
 
        
 
        
 
        


        
        
% Days Fully Invested
        
 %
        
N/A
      
      

        

            
          
      
      
    
  
  

  

  

 

  



  

    
Strategy Transactions
    
The data below shows buys, sells  and a portfolio value row for each day of the simulation.

      

      To copy to the clipboard

       - place mouse over list

       - use right mouse click: 'Select All'

       - use right mouse click: 'Copy'

      - You can then paste into a spreadsheet for further analysis

    
    

          
    
  


  

    

      

          

            
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