Kicker pattern

The kicker pattern is perhaps not very well-known among traders. It can be illustrated as:


It means that the second body is above the first one, as well as the first body is bearish and the second one is bullish. Moreover, the pattern should occur at a downtrend.

I backtested the pattern using a similar strategy as for the engulfing bullish candlestick The only difference is that I enter right after the pattern occurred, i.e. I do not wait for confirmation on the next day. The reason is that the trend has already started and we would lose quite a lot if we decide to wait. A typical trade is shown here:

Kicker(source: NinjaTrader)

The results of backtesting in years 2000-2017 for the Russell 3000 stocks are collected in the table below:

Total net profit $90242
Profit factor 1.32
Maximum drawdown -4.19%
Number of trades 1217
Profitable trades [%] 48.48%
Average trade [%] 0.81%
Win/loss 1.39
Number of days held 18

The results are quite decent, which confirms that the pattern is profitable.