Backtesting the Bullish Harami Pattern

This is the third post in my three part series of backtesting a candlestick patterns. Earlier, I back-tested the Bullish Engulfing Pattern and the Hammer. Today, I will back test the Bullish Harami Pattern.

Quantifying the Hammer

A Bullish Harami pattern is formed when all the following conditions should be met :

  1. today's bar is white (up day) and yesterday's bar is dark
  2. today's candle height is less than yesterday's candle body
Back Testing the Pattern
DataSet : SP500
BackTest Period : 15 years

Buy Signal :
  •  Look for 3 consecutive down days
  • A Bullish Harami is formed on the third day and the fourth day
  • Buy at Open on the fifth day
Sell Signal:
  • Sell on the sixth day


I am only interested in finding out if this particular signal does act as a trend reversal signal. I am not interested in building a trading system. The best performance measure for this task is the Win-Rate as it represents the probability that my hypothesis is correct.

Number of Trades2,387Winning Trades1,115Losing Trades1,272
Average Profit %-0.27%Win Rate46.71%Loss Rate53.29%
Average Bars Held2Average Profit %2.54%Average Loss %-2.73%
Average Bars Held2Average Bars Held2


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