The Setup
MULTI_HVN (Multiple High Volume Nodes) is an order flow strategy that identifies confluence zones where multiple volume clusters stack at key price levels. When price revisits these zones with confirming signals, the strategy enters for a quick scalp.
We ran this through our backtest engine on 12 days of NQ (Nasdaq 100 E-mini) futures data using Databento MBP-10 tick data.
The Results
| Metric | Value |
|---|---|
| Win Rate | 88.9% |
| Profit Factor | 4.85 |
| Total Trades | 18 |
| Wins | 16 |
| Losses | 1 |
| EOD Exits | 1 |
| Net P&L | +$4,485 |
| Max Drawdown | -$1,420 |
| Avg Trade Duration | 27.2 min |
| Stop Loss | 71 pts ($1,420) |
| Take Profit | 21.5 pts ($430) |
That’s a 1:0.3 risk-to-reward ratio — meaning we risk $1,420 to make $430 per trade. Sounds terrible on paper. But with an 88.9% win rate, the math works out significantly in our favor.
Parameter Optimization
| SL (pts) | TP (pts) | R:R | Win Rate | PF | P&L |
|---|---|---|---|---|---|
| 71 | 21.5 | 1:0.3 | 88.9% | 4.85 | +$4,485 |
| 71 | 18.25 | 1:0.3 | 88.9% | 4.11 | +$3,445 |
| 93.5 | 21.5 | 1:0.2 | 88.9% | 3.68 | +$4,035 |
| 134.25 | 30.25 | 1:0.2 | 83.3% | 3.38 | +$5,730 |
| 93.5 | 18.25 | 1:0.2 | 88.9% | 3.12 | +$2,995 |
| 134.25 | 21.5 | 1:0.2 | 88.9% | 2.56 | +$3,220 |
| 93.5 | 30.25 | 1:0.3 | 77.8% | 2.26 | +$4,070 |
| 134.25 | 18.25 | 1:0.1 | 88.9% | 2.18 | +$2,180 |
| 71 | 30.25 | 1:0.4 | 72.2% | 1.85 | +$2,945 |
Key insight: Every single MULTI_HVN configuration was profitable.
What Makes This Strategy Work
- High-probability zones: Multiple volume nodes represent areas where significant trading activity occurred.
- Quick scalps: With average trades lasting 27 minutes, exposure time is minimal.
- Wide stops, tight targets: The wide stop loss gives the trade room to breathe. Most winning trades never approach the stop.
The Honest Truth
18 trades over 12 days is a small sample. We need more data to confirm edge persistence. The strategy needs to be tested across different market conditions — trending vs. ranging, high vs. low volatility.
That said, the consistency across all 9 parameter configurations is encouraging. When every variation is profitable, the underlying signal is likely robust.
Try It Yourself
You can run this backtest on your own data using the MyTradeEdge Backtest Engine.
All results are from historical backtests and do not guarantee future performance. Always paper trade before going live.