Does the Pin bar (hammer / shooting star) reversal strategy work?

We coded the pin bar (hammer / shooting star) reversal to exact mechanical rules and ran it on june 1, 2025 – june 1, 2026 (12 months) of real data with fees on. No discretion, losers published as losers. Here is the verified result.

Secuora Verification

Verified Result

26/ 100
Weak / Unverified

Weak: the mechanical version barely cleared, or failed to clear, the fee hurdle.

Markets tested
4
Markets profitable
0 / 4
Total trades
2,118
Win rate
39.6%
Profit factor
0.72
Avg net P&L
-66.5%
Avg max drawdown
70.4%
Best market
ETH -49.3%
MarketTFTradesWinPFMax DDNet
ETH1h58538.6%0.8557.7%-49.3%
Gold (PAXG)1h51242.8%0.7561.5%-58.6%
BTC1h58538.1%0.7268.9%-64.7%
EUR (EURUSDT)1h43639.2%0.3793.4%-93.3%
How the SVS 26 breaks down ▾
Edge (profit factor)
4.5 / 35
Robustness (markets)
0 / 20
Sample size
20 / 20
Drawdown control
0 / 15
Consistency
1.3 / 10

12 months of real 1-minute data, fees on (0.05%/side), $10k start, 1% risk. How the score works →

The exact rules tested

  • Enter on a pin bar with a wick at least 2x the body (hammer = long, shooting star = short); 1.5x ATR stop; 1.5R target

How to read this

This is the mechanical floor — what the rules alone produced after costs, with zero discretion. A low score doesn’t mean the idea is worthless; it’s the baseline your filtering and judgement have to beat. The SVS methodology explains exactly how the score is built.

Test your own version of this

Add a trend filter, a session window, or a confluence and see if you can beat the floor. Describe it in plain English and the AI backtester runs it on real data.

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Questions

Is the Pin bar (hammer / shooting star) reversal strategy profitable?

Weak: the mechanical version barely cleared, or failed to clear, the fee hurdle. Across 4 markets and 2,118 trades with fees on, it had a profit factor of 0.72 and an average net return of -66.5%.

What is the win rate of the Pin bar (hammer / shooting star) reversal strategy?

39.6% across all tested markets. Note that win rate alone is misleading — with a fixed reward-to-risk target, a mechanically negative strategy can still win 30–45% of the time.

How was the Pin bar (hammer / shooting star) reversal strategy tested?

Coded to exact mechanical rules and run on June 1, 2025 – June 1, 2026 (12 months) of real 1-minute data, fees on (0.05% per side), $10,000 start, 1% risk per trade, on Secuora's deterministic engine. No discretion.

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