ICT Silver Bullet Backtest

Trading the ICT Silver Bullet Strategy using Lux Algo Indicator I decided to backtest but with a trailing SL x ATR as apposed to the usual TP, always struggled to understand having a set TP, it’s like closing a winning trade, The trailing SL allows us to squeeze the most from a winning trade.

If choosing trail TP ATR remember to choose No TP

ICT Silver Bullet Backtesting Strategy | ATR Trailing Stop

A systematic approach to backtesting the ICT Silver Bullet strategy, combining Fair Value Gap (FVG) entries with dynamic ATR-based trailing stop-loss management.

This strategy is designed to help traders test the ICT Silver Bullet concept across the three established trading sessions: London, New York AM and New York PM.

Rather than relying solely on fixed take-profit targets, the strategy offers an ATR-based trailing stop with no fixed take profit, allowing profitable trades the opportunity to run while progressively protecting gains.

How the Strategy Works

The strategy identifies three-candle Fair Value Gaps (FVGs) formed during the ICT Silver Bullet trading windows.

Once a valid bullish or bearish FVG is identified, the strategy waits for price to retrace into the 50% midpoint of the FVG before triggering an entry.

An initial stop loss is placed using the selected candle or FVG boundary, with an optional tick buffer.

Key Features

ICT Silver Bullet Sessions

* London: 03:00–04:00 New York time
* New York AM: 10:00–11:00 New York time
* New York PM: 14:00–15:00 New York time
* Individually enable or disable sessions
* Adjustable maximum trades per session

Fair Value Gap Entry Model

* Automatic bullish and bearish FVG detection
* Entry triggered by a retracement to the FVG midpoint
* Configurable initial stop-loss placement
* Visual display of traded FVG zones

Dynamic ATR Trailing Stop

* Default trailing distance: 2 × ATR(14)
* Fully adjustable ATR period and multiplier
* Configurable trailing activation based on initial risk (R)
* Default activation at 1.5R
* Stop loss only moves in the direction of profit
* Option to remove fixed take-profit targets entirely

Additional Risk Management Options

* Fixed reward-to-risk targets from 1:1 to 1:4
* Support/resistance-based take profit
* Trailing stop can be enabled or disabled
* Adjustable stop-loss buffer

Why Use an ATR Trailing Stop?

Traditional fixed take-profit targets can limit returns during strong directional moves.

An ATR trailing stop adjusts its distance according to market volatility, potentially allowing trades to remain open through normal price fluctuations while tightening risk as price moves favourably.

With the No Take Profit option enabled, trades remain open until the initial or trailing stop is triggered, rather than being closed at a predetermined profit target.

This makes the strategy useful for comparing fixed reward-to-risk exits against volatility-based trade management.

Markets and Timeframes

Designed for backtesting on liquid markets, including:

* Nasdaq Futures (NQ / MNQ)
* S&P 500 Futures (ES / MES)
* Gold Futures (GC / MGC)
* Other suitable liquid instruments

The strategy can be tested across different intraday timeframes, with particular relevance to lower-timeframe ICT Silver Bullet setups.

Backtesting and Optimisation

All major risk-management settings are adjustable, allowing traders to experiment with ATR multipliers, trailing activation levels, stop-loss placement, trading sessions and take-profit methods.

The objective is to provide a consistent, rules-based framework for evaluating the ICT Silver Bullet strategy using historical data.

Disclaimer

This script is provided for educational, research and backtesting purposes only. It does not guarantee profitability or future performance.

Historical backtesting results may differ from live trading due to slippage, commissions, execution conditions and intrabar price movement.

Developed by MarkLeRoy | Mark4ex

Trade the setup. Manage the risk. Let the market determine the reward.

Credit to ICT and Lux Algo