Kicker pattern

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

Kicker0

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.

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