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Backtesting results varying massively from what's mentioned in the book.

Scheduled Pinned Locked Moved Momentify
momentifyprashant shahaskdefinedge
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  • H Offline
    H Offline
    Harshal Chokhawala
    wrote on last edited by
    #1

    Hello,

    Since a couple of days I have been testing out the strategies mentioned in the book. However, I was startled to see there are very big differences in what's mentioned in the book V/S when I actually did the backtesting myself on R-Zone. Also, it is not just limited to 1 strategy but multiple strategies have issues. I haven't tested all of them, but the ones which I have (3 strategies as of now), I am mentioning them below.

    It is my request to the Definedge team and Prashant Sir to kindly look into this matter and please provide a solution as well as the logic behind this issue for better understanding of the system. Also, I request everyone else who may have faced any similar/same issues. If yes, do write down below so that the team knows if the issue is universal. If not, I would request you to go ahead and backtest the strategies to see if your backtesting matches or varies from the one mentioned in the book.

    Few such examples are as below :

    Strategies :

    MIP 37 - Book results are : CAGR - 36.57% & Drawdown - 21.92%
    Actual Backtesting results : CAGR - 32.72% & Drawdown - 52.92%backtest.png book.png

    MIP 35 - Book results are : CAGR - 32.45% & Drawdown - 22.29%
    Actual Backtesting results : CAGR - & Drawdown - 50.07% (Stopped backtesting as it crossed Max DD in between only)
    MIP 35 backtest.png

    MIP 15 - Book results are : CAGR - 39.22% & Drawdown - 16.75%
    Actual Backtesting results : CAGR - 41.4% & Drawdown - **15.98% MIP 15 backtest.png

    In MIP15, my concern is even though the result maybe good, but how can it be different ? If the same data set is being tested without any variations in parameters ?

    I have copied these strategies from "Sample Strategies" from Momentify Page and then backtested it in R-Zone.
    Note : I have kept all the parameters unchanged including backtesting date, capital & universe, etc.

    Hence, it is my humble request to the Definedge team to please look into it and provide a solution as well as logic for this issue in order to avoid any real time issues when we deploy the portfolio for Real Trading.

    Thank You
    Harshal Chokhawala
    19/08/2025

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  • S Offline
    S Offline
    Somu R

    Pro User

    wrote on last edited by
    #2

    Agree even for me especially testing for MIP 37 strategy Universe NIfty 500 backtesting result is varying significantly drawn down coming around 52% against what mentioned in the book 22%, couple od strategies are varying in results ,I request the concern team to take it seriously and remove if any bug ASAP please And upon backtesting couple of times the figures are also changing abruptly ,

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  • R Offline
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    Rajendra Manke

    Pro User

    wrote on last edited by
    #3

    It might be possible as the platform has been launched recently. Every software is subject to fine tuning and such process is more frequent in earlier days. This could be one of the reasons for such differences.

    I am not protecting Definedge. An official statement from the Definedge preferably by Mr Prashant Shah will certainly help in this regard.

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  • A Offline
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    Nikhil Sharma
    wrote on last edited by
    #4

    Attached are the settings and results for MIP-15 tried by me on 30 Aug 2025

    Scanner conditions
    Momentum_Scanner.png

    Market trend filter conditions
    Market_Trend_Filter.png

    Simulator conditions
    Simulator_Conditions.png

    Results
    Result.png

    Krishna Acharya-1721384150149K 1 Reply Last reply
    0
  • R Offline
    R Offline
    Rajendra Manke

    Pro User

    wrote on last edited by
    #5

    We are currently replicating the strategies described in Mr Prashant Shah’s book, comparing the outcomes with those presented in the book, and engaging in discussions on the forum.

    In my assessment, any difference in results may stem from minor variations in one or more parameters. This observation is not intended to challenge anyone’s understanding. The book was written a few months ago, and since then the system may have undergone multiple refinements, which could also explain the deviations.

    That, however, is not the key issue. These strategies should be viewed as guiding frameworks that demonstrate how parameter adjustments can help in achieving optimized outcomes.

    While the back tests suggest the possibility of substantial gains—running into crores of rupees—there is no guarantee that markets will behave in exactly the same way in the future. Performance may improve, or it may deteriorate. More crucial than the projected gains is our psychological preparedness: Are we truly ready to remain invested for the duration assumed in these back tests? How will we react when faced with such huge potential profits? At present, many of us may be comfortable investing ₹20,000–25,000 in a single stock. But when the situation demands an allocation of ₹4–5 lakhs in one company, the psychological challenge could be significant.

    Therefore, our focus should be on adapting these strategies to minimize drawdowns, as initial losses can easily undermine confidence. By working in this direction and openly sharing our experiences, we can create valuable learning opportunities for all participants.

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  • S Offline
    S Offline
    Saju Raj

    Pro User

    wrote on last edited by
    #6

    I encountered a similar issue, which I realized after getting the suggestion from prashant sir, was caused by selecting a different trend filter. Please see the details below if it helps.

    https://forum.definedgesecurities.com/topic/3569/getting-different-result-for-mip-38-from-what-it-is-mentioned-in-the-book?_=1756637407473

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  • Krishna Acharya Offline
    Krishna Acharya-1721384150149K Offline
    Krishna Acharya
    replied to Nikhil Sharma on last edited by
    #7

    Hi Mr. @Nikhil Sharma, In addition to what Mr. @Saju-Raj said, I noticed your portfolio amount is ₹10 Lakhs. For this amount, Prashanth Sir had suggested a Max Stock Price filter too:
    https://forum.definedgesecurities.com/post/7225

    1 Reply Last reply
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