So I've set an Algo that is re-balance is every 7 days, with initial capital of 4000$. It buys 4 stocks every time. and the simple rule is:
-go into a trade when last price crosses above the 13-period-EMA, if market cap is above 200M.
-Sell/short when crossing below the 13 EMA.
Target profit is 16 and trailing loss is 4.
Ideas of why it reaches 215% in the first year ?
(of course it compounds to 50000% after 5 years ).
Why the backtest looks so promising?!