Optimization Update: How We Just Squeezed More Alpha Out of the System
A look under the hood at the latest optimization, why I wasn't happy with 2025, and the new metrics.
First off, a massive shoutout to the paid subscribers. You are the reason I keep refining this edge. I appreciate every single one of you.
As the subs know, the system officially triggered LONG Bitcoin on Monday and we are positioned to capture upside (we are still long as of this writing).
But while the signal is green, I haven’t been idle.
If you’ve been following the Gaussian Volatility Trend Signal (GVTS) system, you know the long-term numbers are undeniable. But to be honest, I wasn’t happy with how it handled the chop in parts of 2025.
There were specific sections where the system got whipped around, suffering a consecutive -8% drawdown.
I suspected we were leaving efficiency on the table by having settings that were too reactionary. Alpha always decays, and I owe it to myself.. and this community to refuse to settle for “good enough.”
So, I went back to the lab. I did a full manual review of every trade since 2017, stripped back the signal logic, and ran a post-optimization process to filter out the noise.
Note:
The GVTS indicator is available on TradingView to all subscribers. If you want to run this system yourself or optimize it for other assets, consider upgrading below.
The Optimization: Before vs. After
The goal wasn’t just more profit, but cleaner profit. I wanted to smooth out the equity curve and remove the friction from the portfolio.
Here is a before & after snapshot of the underperforming chop I mentioned earlier.
The Results (2017–Present)
Here is the net impact of the update. By cutting out the bottom 10% of “mediocre” trade setups, we dramatically improved the system’s health:
Efficiency: Profit Factor increased by +0.5 (Now sitting at an elite 5.107).
Selectivity: We are taking roughly 10% fewer trades. The system is now tighter and less prone to over-trading weak signals.
Risk: Max drawdown dropped to -29%, meaning we didn’t have to sacrifice safety to get the extra performance. We actually improved it.
Win Rate: Holding strong at ~61%.
Old backtest results:
New backtest results:
Why This Update Wins (The Technical Breakdown)
Usually in system design, you have to pick a lane: you either chase high returns with higher risk, or you accept lower returns for better safety.
This update breaks that correlation. It beats both previous versions of the system simultaneously:
The “Holy Grail” of Efficiency: We hit a Profit Factor of 5.107.. the highest we have ever generated. This means for every dollar risking loss, the system generated five dollars in profit.
Higher Reward, Lower Risk: We pushed Net Profit to +24,146% (beating the previous high-risk strategy) while simultaneously pulling Max Drawdown below 30% (beating the previous conservative strategy).
The “Goldilocks” Zone: The new logic filtered out exactly 3 specific trades that were historically dragging us down. We removed the losers without accidentally filtering out any of the massive “God Candle” winners.
I couldn’t sleep until I fixed this. Now that the logic is clean, I’m ready to let it run.
Let me know in the comments if you have questions on the specific parameters.
If you want to see the original breakdown that inspired this work, feel free to check it out below. 👇
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