Strategy library · Candles and price action
Engulfing candle backtest on NQ and ES futures
Engulfing candle
Also called: bullish engulfing pattern, bearish engulfing pattern, engulfing candle strategy, buy a bullish engulfing candle, buy when a bullish engulfing candle forms (entering at the next open), short when a bearish engulfing candle forms (entering at the next open)
What happens if you buy NQ every time a bullish engulfing candle forms (entering at the next open)?
What it is
An engulfing candle is a candle whose body covers the whole body of the previous candle. This strategy goes long at the next open after a bullish engulfing candle and short after a bearish one, with the stop 1 tick beyond the pattern and a target of 2R.
What it did
On NQ futures from 2024-10-08 to 2026-10-07, the engulfing candle strategy took 1,010 trades on the 15-minute chart, won 40.0% of them and finished 2,139.00 points ($42,780 on one NQ contract), before commission and slippage. From 2024-10-08 to 2026-10-07 on NQ, the 509 long trades on the 15-minute chart won 40.7% and made 292.00 points ($5,840 on one NQ contract), before commission and slippage. On ES futures from 2024-08-28 to 2026-08-27, the engulfing candle strategy took 1,140 trades on the 15-minute chart, won 39.5% of them and finished 339.75 points ($16,988 on one ES contract), before commission and slippage. The 5-minute, 1-hour and daily results for both markets are in the table on this page.
How it was tested
CE Market Solutions tested the engulfing candle strategy on NQ (2024-10-08 to 2026-10-07) and ES (2024-08-28 to 2026-08-27) futures, before commission and slippage, with each signal filled at the next bar's open, intraday positions flat at 15:59 ET and textbook default indicator settings; the NQ trades are listed on this page and the ES trades under the ES tab.
See it tested with one change · $19
Tested by CE Market Solutions on 2026-10-26. The trades are listed below, one market at a time. Gross, no commission or slippage. Last 2 years.
Results
Rule as tested: Long the next open after a bullish engulfing candle; short after a bearish one. Exit: Stop 1 tick beyond the pattern, target 2R.
| Timeframe | NQ · 2024-10-08 to 2026-10-07 | ES · 2024-08-28 to 2026-08-27 | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Trades | Win % | Avg pts | Profit factor | Net pts | Net $ (1 NQ) | Max DD pts | Trades | Win % | Avg pts | Profit factor | Net pts | Net $ (1 ES) | Max DD pts | |
| 5 minute | 2585 | 35.1% | 0.06 | 1.002 | 160.50 | $3,210 | 3,880.00 | 3039 | 34.0% | −0.26 | 0.954 | −781.00 | −$39,050 | 1,062.25 |
| 5 minute · longs only | 1257 | 35.2% | — | — | 196.00 | $3,920 | 3,383.25 | 1500 | 32.9% | — | — | −1,095.50 | −$54,775 | 1,127.00 |
| 5 minute · shorts only | 1328 | 34.9% | — | — | −35.50 | −$710 | 2,091.00 | 1539 | 35.0% | — | — | 314.50 | $15,725 | 413.50 |
| 15 minute | 1010 | 40.0% | 2.12 | 1.057 | 2,139.00 | $42,780 | 3,368.50 | 1140 | 39.5% | 0.30 | 1.039 | 339.75 | $16,988 | 901.25 |
| 15 minute · longs only | 509 | 40.7% | — | — | 292.00 | $5,840 | 1,837.50 | 583 | 40.5% | — | — | −66.75 | −$3,337 | 565.75 |
| 15 minute · shorts only | 501 | 39.3% | — | — | 1,847.00 | $36,940 | 2,464.75 | 557 | 38.4% | — | — | 406.50 | $20,325 | 500.00 |
| 1 hour | 342 | 49.1% | 5.45 | 1.128 | 1,863.75 | $37,275 | 1,438.00 | 439 | 43.3% | −1.62 | 0.844 | −709.00 | −$35,450 | 974.00 |
| 1 hour · longs only | 166 | 51.2% | — | — | 538.75 | $10,775 | 1,644.50 | 236 | 44.1% | — | — | −268.75 | −$13,437 | 511.50 |
| 1 hour · shorts only | 176 | 47.2% | — | — | 1,325.00 | $26,500 | 941.25 | 203 | 42.4% | — | — | −440.25 | −$22,012 | 537.50 |
| Daily | 25 | 44.0% | 418.79 | 2.524 | 10,469.75 | $209,395 | 1,733.25 | 28 | 25.0% | 14.05 | 1.194 | 393.50 | $19,675 | 1,069.25 |
| Daily · longs only | 12 | 41.7% | — | — | 7,179.75 | $143,595 | 1,191.25 | 13 | 15.4% | — | — | 426.25 | $21,313 | 585.25 |
| Daily · shorts only | 13 | 46.2% | — | — | 3,290.00 | $65,800 | 1,471.75 | 15 | 33.3% | — | — | −32.75 | −$1,637 | 619.00 |
Free to use with credit to CE Market Solutions (CC BY 4.0).
NQ 15 minute: the equity line
Long and short
| Side | Trades | Net pts |
|---|---|---|
| Long | 509 | 292.00 |
| Short | 501 | 1,847.00 |
By month
| Month | Trades | Net pts |
|---|---|---|
| 2024-10 | 43 | −420.25 |
| 2024-11 | 41 | −311.75 |
| 2024-12 | 41 | 971.50 |
| 2025-01 | 40 | 89.75 |
| 2025-02 | 35 | 373.00 |
| 2025-03 | 40 | 756.25 |
| 2025-04 | 44 | 1,378.25 |
| 2025-05 | 50 | −1,283.75 |
| 2025-06 | 43 | 35.75 |
| 2025-07 | 50 | 210.25 |
| 2025-08 | 44 | −261.00 |
| 2025-09 | 44 | 147.00 |
| 2025-10 | 47 | −687.25 |
| 2025-11 | 40 | −223.00 |
| 2025-12 | 39 | −602.25 |
| 2026-01 | 38 | −340.75 |
| 2026-02 | 34 | 227.50 |
| 2026-03 | 37 | −269.75 |
| 2026-04 | 42 | 963.00 |
| 2026-05 | 45 | −79.75 |
| 2026-06 | 42 | 659.00 |
| 2026-07 | 44 | 910.75 |
| 2026-08 | 35 | −286.25 |
| 2026-09 | 41 | 145.00 |
| 2026-10 | 11 | 37.75 |
Every trade, NQ 15 minute1010 trades
Pick any of the 1010 charted trades with Previous, Next or a date, or click a row in the trades table below, to see it drawn on the real 1-minute bars. Drag the chart sideways to move through the sessions around it.
Chart unavailable. The trades are in the table below.
All trades (1010), newest first
Times are New York time; points are gross. Click a row to draw that trade in the chart above.
| Session date | Side | Entry (ET) | Entry price | Exit (ET) | Exit price | Exit reason | Points |
|---|---|---|---|---|---|---|---|
| 2025-10-30 | short | 09:45 | 25974.75 | 09:54 | 26127.75 | stop | −153.00 |
| 2025-10-29 | short | 14:45 | 26070.50 | 15:50 | 26283.75 | stop | −213.25 |
| 2025-10-29 | long | 12:30 | 26249.25 | 14:35 | 26203.00 | stop | −46.25 |
| 2025-10-29 | short | 12:15 | 26224.25 | 12:25 | 26249.75 | stop | −25.50 |
| 2025-10-29 | short | 10:45 | 26278.00 | 12:04 | 26216.50 | target | 61.50 |
| 2025-10-28 | short | 15:45 | 26194.00 | 15:59 | 26160.00 | end of day 15:59 | 34.00 |
| 2025-10-28 | long | 13:15 | 26131.00 | 14:31 | 26188.00 | target | 57.00 |
| 2025-10-28 | short | 10:30 | 26045.50 | 12:02 | 26076.75 | stop | −31.25 |
| 2025-10-28 | long | 09:45 | 26077.50 | 09:53 | 26034.00 | stop | −43.50 |
| 2025-10-27 | short | 15:15 | 25932.75 | 15:46 | 25946.50 | stop | −13.75 |
| 2025-10-27 | long | 09:45 | 25838.75 | 13:42 | 25923.75 | target | 85.00 |
| 2025-10-24 | long | 09:45 | 25506.75 | 15:59 | 25509.50 | end of day 15:59 | 2.75 |
| 2025-10-23 | long | 12:00 | 25194.75 | 15:59 | 25253.00 | end of day 15:59 | 58.25 |
| 2025-10-23 | short | 11:45 | 25128.50 | 11:55 | 25205.50 | stop | −77.00 |
| 2025-10-22 | long | 14:30 | 24916.00 | 15:59 | 25040.50 | end of day 15:59 | 124.50 |
| 2025-10-22 | long | 11:00 | 25173.75 | 11:23 | 25050.25 | stop | −123.50 |
| 2025-10-21 | long | 14:30 | 25316.00 | 15:59 | 25289.75 | stop | −26.25 |
| 2025-10-20 | long | 11:30 | 25321.50 | 15:59 | 25300.25 | end of day 15:59 | −21.25 |
| 2025-10-20 | short | 11:15 | 25291.25 | 11:20 | 25322.75 | stop | −31.50 |
| 2025-10-17 | long | 10:00 | 24822.00 | 15:59 | 24989.00 | end of day 15:59 | 167.00 |
| 2025-10-16 | long | 15:45 | 24774.00 | 15:59 | 24830.75 | end of day 15:59 | 56.75 |
| 2025-10-16 | long | 13:00 | 24927.25 | 14:12 | 24731.75 | stop | −195.50 |
| 2025-10-16 | long | 10:30 | 25081.50 | 11:30 | 25013.50 | stop | −68.00 |
| 2025-10-16 | long | 09:45 | 25091.75 | 09:50 | 25037.75 | stop | −54.00 |
| 2025-10-15 | short | 15:45 | 24911.75 | 15:59 | 24924.50 | end of day 15:59 | −12.75 |
| 2025-10-15 | long | 14:45 | 24927.25 | 15:39 | 24885.50 | stop | −41.75 |
| 2025-10-15 | short | 11:15 | 25076.50 | 11:34 | 25003.00 | target | 73.50 |
| 2025-10-14 | short | 15:45 | 24717.50 | 15:59 | 24757.25 | end of day 15:59 | −39.75 |
| 2025-10-14 | long | 13:15 | 24913.25 | 15:37 | 24857.75 | stop | −55.50 |
| 2025-10-13 | long | 13:00 | 24948.00 | 15:01 | 24887.50 | stop | −60.50 |
| 2025-10-13 | short | 12:45 | 24901.00 | 12:49 | 24930.50 | stop | −29.50 |
| 2025-10-09 | short | 09:45 | 25276.25 | 15:59 | 25294.50 | end of day 15:59 | −18.25 |
| 2025-10-08 | long | 15:15 | 25294.50 | 15:59 | 25330.00 | end of day 15:59 | 35.50 |
| 2025-10-08 | short | 12:30 | 25253.00 | 13:48 | 25276.50 | stop | −23.50 |
| 2025-10-08 | short | 10:45 | 25196.75 | 11:25 | 25226.25 | stop | −29.50 |
| 2025-10-07 | long | 14:45 | 25038.50 | 15:45 | 25070.00 | target | 31.50 |
| 2025-10-07 | long | 12:30 | 25036.75 | 14:03 | 24997.75 | stop | −39.00 |
| 2025-10-07 | long | 09:45 | 25246.00 | 10:03 | 25216.75 | stop | −29.25 |
| 2025-10-06 | long | 13:30 | 25221.50 | 15:59 | 25182.75 | stop | −38.75 |
| 2025-10-06 | short | 09:45 | 25140.50 | 13:23 | 25222.00 | stop | −81.50 |
| 2025-10-03 | long | 14:30 | 25037.75 | 15:59 | 24996.75 | end of day 15:59 | −41.00 |
| 2025-10-02 | long | 12:00 | 25077.50 | 15:59 | 25109.50 | end of day 15:59 | 32.00 |
| 2025-10-02 | long | 10:30 | 25076.25 | 10:46 | 25040.50 | stop | −35.75 |
| 2025-10-01 | long | 10:15 | 24830.75 | 15:59 | 25011.75 | end of day 15:59 | 181.00 |
| 2025-10-01 | long | 09:45 | 24828.00 | 09:49 | 24742.50 | stop | −85.50 |
| 2025-09-29 | long | 15:45 | 24822.25 | 15:59 | 24837.25 | end of day 15:59 | 15.00 |
| 2025-09-29 | long | 14:00 | 24845.00 | 15:07 | 24814.75 | stop | −30.25 |
| 2025-09-29 | short | 12:30 | 24848.75 | 13:03 | 24810.75 | target | 38.00 |
| 2025-09-29 | long | 09:45 | 24914.00 | 11:36 | 24846.25 | stop | −67.75 |
| 2025-09-26 | long | 15:30 | 24725.25 | 15:50 | 24707.25 | stop | −18.00 |
Questions and answers
What happens if you buy NQ every time a bullish engulfing candle forms (entering at the next open)?
From 2024-10-08 to 2026-10-07 on the NQ 15-minute chart, the engulfing candle strategy took 509 long trades, won 40.7% of them and made 292.00 points ($5,840 on one NQ contract), before commission and slippage. From 2024-10-08 to 2026-10-07 on NQ, its long trades also made 196.00 points on 1,257 trades on the 5-minute chart, 538.75 points on 166 trades on the 1-hour chart and 7,179.75 points on 12 trades on the daily chart, before commission and slippage.
What happens if you short ES every time a bearish engulfing candle forms (entering at the next open)?
From 2024-08-28 to 2026-08-27 on the ES 15-minute chart, the engulfing candle strategy took 557 short trades, won 38.4% of them and made 406.50 points ($20,325 on one ES contract), before commission and slippage. From 2024-08-28 to 2026-08-27 on ES, its short trades also made 314.50 points on 1,539 trades on the 5-minute chart, -440.25 points on 203 trades on the 1-hour chart and -32.75 points on 15 trades on the daily chart, before commission and slippage.
Does the engulfing candle strategy work on Nasdaq futures?
On NQ futures from 2024-10-08 to 2026-10-07, the engulfing candle strategy on the 15-minute chart took 1,010 trades, won 40.0% of them and finished 2,139.00 points ($42,780 on one NQ contract), before commission and slippage.
What is the win rate of Engulfing candle on ES futures?
The engulfing candle strategy won 39.5% of its 1,140 trades on the ES 15-minute chart from 2024-08-28 to 2026-08-27, before commission and slippage. On ES from 2024-08-28 to 2026-08-27 it also won 34.0% of 3,039 trades on the 5-minute chart, 43.3% of 439 trades on the 1-hour chart and 25.0% of 28 trades on the daily chart, before commission and slippage.
Is the engulfing candle strategy better on the 5-minute, 15-minute, 1-hour or daily chart for NQ?
On NQ from 2024-10-08 to 2026-10-07, the engulfing candle strategy made 160.50 points on 2,585 trades on the 5-minute chart, 2,139.00 points on 1,010 trades on the 15-minute chart, 1,863.75 points on 342 trades on the 1-hour chart and 10,469.75 points on 25 trades on the daily chart, before commission and slippage.
Is it better to only buy or only sell engulfing candle signals on NQ?
On the NQ 15-minute chart from 2024-10-08 to 2026-10-07, the long trades made 292.00 points on 509 trades (40.7% won) and the short trades made 1,847.00 points on 501 trades (39.3% won), before commission and slippage.
How many trades does the engulfing candle strategy take on NQ in two years?
The engulfing candle strategy took 1,010 trades on the NQ 15-minute chart from 2024-10-08 to 2026-10-07, before commission and slippage. On NQ from 2024-10-08 to 2026-10-07 it also took 2,585 on the 5-minute chart, 342 on the 1-hour chart and 25 on the daily chart, before commission and slippage.
What is the max drawdown of the engulfing candle strategy on NQ?
The engulfing candle strategy had a max drawdown of 3,368.50 points ($67,370 on one NQ contract) on the NQ 15-minute chart from 2024-10-08 to 2026-10-07, before commission and slippage. On NQ from 2024-10-08 to 2026-10-07 its max drawdown was also 3,880.00 points on the 5-minute chart, 1,438.00 points on the 1-hour chart and 1,733.25 points on the daily chart, before commission and slippage.
How does the engulfing candle strategy do on ES compared with NQ?
On the ES 15-minute chart from 2024-08-28 to 2026-08-27, the engulfing candle strategy took 1,140 trades, won 39.5% of them and made 339.75 points ($16,988 on one ES contract), before commission and slippage. On the NQ 15-minute chart from 2024-10-08 to 2026-10-07, the engulfing candle strategy took 1,010 trades, won 40.0% of them and made 2,139.00 points ($42,780 on one NQ contract), before commission and slippage.
How these were run
- Gross: no commission and no slippage.
- The last 2 years of each market, from the first to the last session of its window.
- A signal on a closed bar fills at the next bar’s open.
- A stop and a target touched in the same minute count as the stop.
- Intraday positions are flat at 15:59 ET.
- Textbook TradingView default settings for every indicator; nothing is tuned.
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