When you develop your own strategy you should compare its performance to the "buy-and-hold" strategy (you buy the financial instrument and you hold it long term). Ideally your strategy should perform better than the buy-and-hold strategy. While the net profit % of the buy-and-hold strategy is available under the "Performance Summary" tab of the "Strategy Tester" there are other factors that should be considered though. This is where this strategy comes in. It mimics the buy-and-hold strategy and gives you all the stats that are available for any strategy. For example, one such criteria that should be considered is the max. drawdown. Even if you strategy performs worse than the buy-and-hold strategy in terms of net profit, if the max. drawdown of your strategy is considerably lower than that of the buy-and-hold it may overall be a better strategy than the buy-and-hold as, in this scenario, it likely exposes the investor to significantly less risk.
This algorithm appears to trade too frequently making these returns too unreliable as commission costs would have put you far behind the market performance.
TradersForecast
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@Algorithmix, hey thanks for you input. This is not a real trading algorithm. I'm working on publishing the real one at the moment. Here's an idea published with it. It has over 82 million % net profit for bitcoin since 2011 (not a typo!): (and over 1 mil. % net profit for equities, TECL: tradingview.com/chart/TECL/O4rfbJPg-TECL-QQQ-bearish-signal-form-algo-with-over-1-mil-net-profit/). What this is is a buy-and-hold stats analyzer (so to speak). While working on my real algorithm I wanted to compare its stats to those of a simple buy-and-hold strategy. While net profit is provided under the Performance Summary tab, others stats are not provided. For that reason I made this simple strategy which closes and buys on every bar (so it trades often on purpose). It's not meant to be traded but only to provide an approximation of stats for comparison to strategy/algo meant for trading. If you actually buy and hold it you won't have any stats for profit factor, max. drawdown, net profit, etc. As an approximation, I made the strategy close and buy every bar to provide these stats for comparison. Makes sense?