Linda Bradford Raschke & Laurence Connors
Holy Grail (ADX + 20 EMA pullback)
Win rate
34.1%
Trades
41
Profit factor
0.93
loss > profit
Return
-1.8%
under hold +7496.1%
Drawdown
7.9%
Account curve
BNBUSDT · 1H2018-09-21 → 2026-09-19 · 8.0 years
Wins and losses
- Wins14
- Losses27
How it trades
- 1
Timeframe
1H · 4H · 1D
- 2
Setup / filter
ADX(14) > 30 AND ADX(14) is higher than one candle ago AND +DI above −DI (14)
- 3
Entry
candle low touches or crosses below EMA(20) → buy stop at the signal candle's high, valid 3 candles (filled at the level, or at the open on a gap)
- 4
Stop
lowest low of the 5 completed candles before the signal candle
- 5
Target / exit
Target: 2R (R = entry-to-stop distance)
- 6
Risk
1% of equity risked to the stop
Evidence
What this test cannot reproduce
Short trades (a pullback to the 20 EMA in a downtrend) cannot be executed on Spot, so only the long side is tested.
"First" pullback is mechanical here: any candle whose low touches or crosses the 20 EMA while ADX(14) > 30 and rising qualifies, so more setups are taken than a discretionary trader would take.
"Previous swing high" as the target is approximated by a fixed 2R target, because the published rule depends on the trader's own reading of the chart.
The buy stop is valid for 3 candles; the published rule says "a few bars".
The setup was published for stocks and futures; this test runs on the crypto pair you named.
Every backtest of these rules
- BNBUSDT1H8.0 yearsNOT RECOMMENDED31 Aug 2026
Trades
41
Win rate
34.1%
Profit factor
0.93
Max drawdown
7.9%
Return
-1.8%under hold +7496.1% - ETHUSDT1H8.0 yearsNOT RECOMMENDED31 Aug 2026
Trades
40
Win rate
32.5%
Profit factor
0.89
Max drawdown
6.8%
Return
-2.8%under hold +1071.7% - BTCUSDT4H8.0 yearsRECOMMENDED31 Aug 2026
Trades
10
Win rate
50.0%
Profit factor
1.83
Max drawdown
1.1%
Return
+4.5%under hold +1134.0%