Your idea: He overlays a one-second interval line chart with two lines: the S&P 5… — backtested on Indian market data | FakeTrades
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Your idea: He overlays a one-second interval line chart with two lines: the S&P 5…

💡 Described strategy
Analysed 13 Aug 2026, 12:12 AM IST
★☆☆☆☆ 1.0 / 5
🌐
Heads up: this strategy was originally created for the US stock market. We applied the exact same logic to Indian stocks & indices and the backtest completed successfully — every result below is on Indian market data.

Why 1.0/5? (stars grade the EDGE — per-trade expectancy, consistency, drawdown — not the headline return)

  • Negative expectancy: -0.24R per trade across 28,458 trades
  • Payoff 0.60 — the average winner is SMALLER than the average loser
  • 9 of 9 tested years were negative (2018, 2019, 2020, 2021) — the edge is regime-dependent

Verdict

Auto-backtested. AI-decoded: US index intraday divergence play: buy S&P 500 when Dow Jones leads upward after post-open U-shape dip, expecting mean-reversion follow-through within ~1 minute. We isolated the one mechanical claim — a day-of-week bias where a prior session's level is expected to be 'revisited'/swept — and traded it short across 159 large/mid-caps with real costs: 28,458 trades, win 49%, expectancy -0.24R/trade (avg -0.24%/trade).

The result is a high win-rate that still loses money after costs — a negative-skew mirage: small targets, larger adverse moves. A directional lean can be statistically real yet still fail to pay once you attach a target, a stop and costs.

Mechanically decoded and scored from the metrics. Flagged for human review.

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🔴 Live forward test (no hindsight — only trades the rules fired AFTER we published this verdict)

Tracking since 2026-08-13 — no qualifying signals have fired yet. The engine re-checks every night on fresh data; results appear here the day the rules trigger.

Is it profitable? (green above the line = made money, red below = lost it)

Year by year (every trade the rules fired, across the tested stocks)

YearTradesWin %ExpectancyAvg return / trade
2018171547% -0.21R -0.26%
2019346750% -0.22R -0.21%
2020322748% -0.05R -0.11%
2021338049% -0.30R -0.33%
2022384258% -0.06R -0.10%
2023364241% -0.41R -0.34%
2024352142% -0.37R -0.34%
2025403349% -0.30R -0.26%
2026163156% -0.15R -0.17%

Where this strategy made & lost money (the full stock-by-stock breakdown — 158 stocks, incl. 2026)

#StockTradesWin%Avg/tradeBestTotal2026
1 ████████ 18852% -0.1% +6% -16% +6%
2 ████████ 17949% -0.3% +7% -47% +5%
3 ████████ 19253% -0.1% +6% -13% +4%
4 ████████ 5657% -0.3% +2% -15% +4%
5 ████████ 18948% -0.2% +10% -46% +4%
6 ████████ 19242% -0.3% +9% -59% +4%
7 ████████ 15043% -0.5% +4% -76% +4%
8 IDFCFIRSTB free peek 17953% -0.0% +11% -8% +3%
9 ████████ 18252% -0.1% +9% -10% +3%
10 ████████ 17854% -0.1% +3% -9% +2%
11 ████████ 19251% -0.1% +7% -14% +2%
12 ████████ 10551% -0.2% +5% -22% +2%
13 ████████ 18750% -0.2% +3% -39% +2%
14 ████████ 17549% -0.2% +3% -40% +2%
15 ████████ 18849% -0.2% +4% -44% +2%
16 ████████ 17050% -0.3% +3% -46% +2%
17 ████████ 17951% -0.3% +5% -46% +2%
18 ████████ 18350% -0.3% +6% -47% +2%
19 ████████ 16545% -0.3% +2% -49% +2%
20 ████████ 18849% -0.3% +3% -51% +2%
21 ████████ 19050% -0.4% +3% -70% -13%
22 ████████ 18642% -0.3% +10% -60% -9%
23 ████████ 18847% -0.3% +3% -56% -9%
24 ████████ 18653% -0.1% +13% -25% -9%
25 ████████ 18843% -0.3% +8% -48% -8%
26 ████████ 18350% -0.2% +11% -37% -8%
27 ████████ 18048% -0.2% +7% -32% -8%
28 ████████ 18543% -0.4% +3% -73% -7%
29 ████████ 15148% -0.3% +3% -48% -7%
30 ████████ 20644% -0.2% +6% -43% -7%
You can see the numbers — see the names. Unlock every stock in this breakdown and download it as Excel. The worst stock in this table returned -76% under these exact rules — one wrong pick costs many times the unlock.

Educational backtest output only — not investment advice or a recommendation to buy/sell any security. AI-generated from stored historical data; not 100% accurate. Past performance is not indicative of future results.

On the index (same rules applied to NIFTY & BANKNIFTY)

IndexTradesWin%Expectancy (R/trade)Avg return/trade
NIFTY24335% -0.55R -0.19%
BANKNIFTY25545% -0.41R -0.18%
Full transcript (81 words)
He overlays a one-second interval line chart with two lines: the S&P 500 in blue and the Dow Jones Industrial Average in red. The pattern he describes is that both indices usually drop together right after the open, forming a U-shape. The claimed buy signal happens when the Dow Jones turns upward and starts rising just before the S&P 500 does. At that divergence point he enters a trade on the S&P 500, expecting it to follow within about a minute.

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