[Music] there's two squeeze candidates which stand out these have excellent back tests and a squeeze that looks likely to fire long in today's video I'll show exactly what that signal is which is our slingshot squeeze along with the two different stocks we'll analyze what their back tests have been using more than 20 years worth of data to try and determine is this a trade worth taking now first things first where to download the back tester I'll be using for all volatility box members the back tester is included for free with your membership and we build
it together in our squeeze course in module 12 and module 13 this is the slingshot squeeze back tester and in module 13 you'll learn how to build and add these stats which make it really easy to analyze trades now I'm also using the slingshot squeeze scans so if we were to take a look at the scan results here I've run our bullish slingshot squeeze scan in all symbols but I've added in two different liquidity filters one is a volume filter and one is a price filter outside of that I just have our slingshot squeeze conditions
one and two and once we run this scan we're left with three different stocks that meet our criteria the first is under arour then we have vfc and then we have Vivi Solutions our goal is to try and figure out which out of these three do we actually want to take the trade in is it all three is it just one out of the three two out of the three what is it to help us answer that question I've loaded in our slingshot squeeze back tester this is the back tester built in module 12 and
it gives you some really nice helpful stats that make it easy to determine do you want to take this trade or skip it so let's go through all three candidates together the first one we said was Under Armour we take a look at Under Armour and the first thing that stands out the market stage we're in a market stage of accumulation and so far this trend still seems to be more towards the bullish side we can see that the slingshot squeeze is forming right here and we're looking for the squeeze to fire to the long
side when we run our back test to build some confidence we can see that over the past 20 plus years we've had 14 winners three losers that tells us that our winto loss ratio is fairly solid the next question is determining is this still a profitable strategy you'll find tons of times your win rate might be exceptionally well but you'll see that in the net the strategy actually loses to help us answer that question we can take a look at the p&l and very clearly a positive p&l over 17 different trades the one downside the
average loser of this trade is much greater than the average winner so that's something that gives me a little bit of caution average trade duration about 10 days so Under Armour looks fairly solid minus the average loss being bigger than the average uh gain and one way we can help mitigate that risk we wait for a slight pullback to this Market pulse line so near the 920 Mark so Under Armour was the first stock then we go on to vfc repeat the same exercise with our back tester loaded on Max available data and here you
should notice something a little bit different before I even look at the results here it doesn't matter what these labels are telling us just look at this p&l graph down here very clearly readed you can see that the p&l is negative doesn't really matter what this win to loss rate is if you're not going to make money on the strategy so vfc is one that I would skip doesn't really matter how nice of a win to loss rate this has and finally we move on to the last ticker viavi Solutions this one out of the
three is my favorite whoops VAV if we take a look at the back test here you'll see that the back test if we run it for the max available data is a really exceptional back test we have 24 winners two losers 24 out of 26 trades over their whatever period we're looking at here has led to a successful strategy here and this goes all the way back to 1994 you can see the average winner much greater than the average loser 27% compared to 10% if you wanted to actually analyze each trade you could do that
in the report but this p&l graph makes it really easy to tell that this uh strategy is working fairly well you'll also see that the back tester ignores this strategy when the trend is not on your side take a look at this entire period in which you see Zero trades for the bullish side whenever we're trending downwards the back tester automatically has a trend filter built in so as we've started to see this new uptrend we've already had one and two different squeezes now we're getting the third different squeeze entry and once again with a
very positive back test we zoom in here we take a look at this in a little bit more detail the other thing that stands out for viav we have the one two punch combo starting to build up here not necessarily in that Str uh same strong bullish direction as we normally see but still the pattern is there which tells you that you're now looking for momentum to maybe just chop around and slowly start to get going in that bullish Direction excuse that Mouse so viav out of the three that we took a look at is
the one that I like the most so if you had to rank this I would almost say first second for Under Armour and then third is vfc which quite honestly we should just be skipping all together so there you have it we ran our slingshot squeeze and for all volatility box members you can download the back tester that I used along with the scans for free on our website to indicators. squeezey course we use the slingshot squeeze scans in module 11 along with the back tester that we build in modules 12 and 13 to find
these three stocks Under Armour vfc and Vive Solutions and out of those three we narrowed it down to the two squeeze candidates that actually had some positive back test a nice entry and a way to participate to the upside I hope you found this video helpful for those of you that are squeeze Traders looking for some new plays where you have the back test on your side take care everyone good luck trading and I'll see you in our next update
