Is the Fisher Transform really that good? What’s the win rate of the Fisher Transform Strategy? What are the advantages and Disadvantages of Trading with the Fisher Transform Indicator? In this video, I took 100 Trades with the Fisher Transform Strategy to find that out! Fisher Transform is an interesting indicator because while taking 100 trades with it, it was indicating the end of a pullback with great accuracy. In fact, till the first 30 or so trades, the profit line in the Trading Rush App went in an upward direction in almost a straight line.

However, the good accuracy was not the only thing that led to a good profit graph at the start. You see, the Fisher Transform Indicator compared to other accurate indicators like MACD reacts to the price movement faster. When the pullbacks were smaller in a good trend, the Fisher Transform was quick at reacting to the price movement and gave entry signals pretty much near the end of the pullbacks. But as we saw in the Fisher Transform Strategy video, the Fisher Transform Indicator is unbounded. So when the smaller pullback was actually the end of the pullback, there was no problem and the Fisher Transform’s faster signals gave multiple winning trades in a row. But when the smaller pullback was just a part of a bigger pullback in a trend, the Fisher Transform Indicator gave a decent amount of false signals by reacting to price faster.

The Fisher Transform is an excellent indicator, but it is a bit noisy compared to other slow-to-react but accurate indicators like MACD. Since the price doesn’t move like a stick, in the long run, the Fisher Transform gave more false signals and gave back most of the profit made at the beginning. Unlike many other indicators that performed well on their own and gave win rates as high as 58 and 62 percent on the Trading Rush Channel, the Fisher Transform is better used with other indicators as a confirmation. Like I said before, the Fisher Transform is a pretty accurate indicator, but noisier. So using it to confirm reversals at support and resistance areas is a good idea only if the price movement is good. If the price movement is choppy, looking at Fisher transform is not such a good idea. You will get a lot of false signals in a row.

The Fisher Transform Trading Strategy lost 15 trades in a row and won 8 trades in a row. After 100 trades, it got an approximate win rate of 42 percent with a 1.5 to 1 reward risk ratio. The win rate was good in the short term but average and lower than what some of you were expecting in the long term. Strategies that react to price movement faster can have a good winning streak and show a high win rate in the good market conditions, but then also give more false signals and a worse losing streak in the long run.

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The Fisher Transform Strategy gets a TR Score of 23.7 out of 50, and ranks 24th from the top, below the Hull Moving Average with SMA Strategy, and above the Stochastic Trading Strategy. That’s all.