Financial Ratios Fundamental Strategy

Script from: TradingViewLongTermTrend followingMomentum

The Financial Ratios Fundamental Strategy hinges on tracking quarterly changes in four key financial ratios: Current Ratio, Interest Coverage Ratio, Payables Turnover Ratio, and Gross Margin. A rising figure in any of these ratios suggests a long entry, while declining numbers trigger an exit. This approach aligns with using fundamentals for trade decisions, though it lacks risk management features and mainly serves as an educational framework.

Audit verdict

Not rankedUpdated Jul 28, 2026

No reliable edge found

Its average result can't be told apart from chance, so it stays out of our rankings. The script itself passed our repainting audit.

1,490backtests3 markets

22robust scoreranked median 52

0.69p-valueranked median 0.24

0/53pass quality gatebacktests >15 trades

Audit details

How we decide whether a strategy enters our rankings. Read the methodology →

✓

Repainting audit

8 of 8 checks passed.

✓

Script availability

Open-source, still published on TradingView.

Statistical edge

Average t-statistic 0.41 (p = 0.69), below the median of 1.98 (p = 0.24) for ranked strategies.

Quality gate

None of the 53 backtests with more than 15 trades passes our quality gate.

Robust score

22/100, below the median of 52 for ranked strategies.

How its evidence compares

The t-statistic measures how far the average result sits from zero relative to its noise. Below about 2, it is within what random entries produce.

0.41

avg. t-statistic

1.98

median, ranked strategies

Best 5 of 1,490 backtests

Shown for transparency.

Symbol	Timeframe	Net profit	Profit factor	Trades	Max drawdown
Marathon Digital Holdings, Inc. NASDAQ:MARA	1D	+12,809%	1.55	23	78%
Marathon Digital Holdings, Inc. NASDAQ:MARA	1H	+7,147%	1.44	23	74%
Marathon Digital Holdings, Inc. NASDAQ:MARA	4H	+5,257%	1.33	23	73%
Plug Power, Inc. NASDAQ:PLUG	1D	+1,038%	1.25	24	94%
Riot Platforms, Inc. NASDAQ:RIOT	15m	+688%	1.38	9	74%

⚠Selected after the fact: these are the best 5 of 1,490 runs, not what to expect from this strategy. All have fewer than 60 trades, too few to separate skill from luck.

Is Financial Ratios Fundamental Strategy profitable?

Not reliably, based on our tests. Across 1,490 backtests, 0 of 53 with more than 15 trades pass our quality gate. The best result is +12,809% on Marathon Digital Holdings, Inc. (1D, 23 trades). On average, its results are statistically indistinguishable from chance (p = 0.69).

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