AUDIT-GRADE · PUBLIC SAMPLE

Strong recommendation: Portfolio A-3

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Strong recommendation: Portfolio A-3

Across 1,000 Monte Carlo trials, A-3 cleared the FTMO Phase-1 floor with a 95% CI of 71–84%. Drawdown stacking simulation held under 8.2% max DD against the 10% rule. Sharpe-ratio lower bound of 1.42 across 3,517 simulated trades over a 3-year backtest period.

Recommended for traders prioritizing consistency over peak return. Primary firm match: FTMO 2-step Phase 1 on highest CI lower bound. Conservative on every margin — same-seed reproducible, audited per the Pass Lab methodology.

71–84%
Pass-rate CI
8.2%
Max DD simulated
1.42
Sharpe (lower bound)
3,517
Total trades
3 yrs
2023 – 2025
4.2 h
Avg holding
seed 42
Deterministic

Why this portfolio?

Portfolio A-3 is the recommendation because it had the highest CI lower bound across the Pareto-optimal candidates, not the highest point estimate. A point estimate of 91% with a wide interval of [54%, 91%] would look impressive on a chart and fail the same trader on the same backtests in a different intraday trade order. A-3's tighter [71%, 84%] is more stable across walk-forward windows — and tighter is what survives live execution where you can't re-pick the seed.

The drawdown signature is what makes A-3 different from neighbouring Pareto candidates. A-1 had a higher Sharpe point estimate (1.78 vs 1.42) but wide swings — its 5th-percentile path crossed the FTMO 5% daily-DD ceiling on three of 1,000 Monte Carlo trials. A-3 has shallower drawdowns, spread across uncorrelated EAs that don't lose together. The compounding of small, uncorrelated drawdowns is what a "shared-balance simulator" actually catches — and what merged-trade-list tools miss entirely.

The brand promise is the lower bound, not the best case: this is the worst run we found, not the best. If the CI lower bound clears the firm's pass threshold, the portfolio is the primary match — even if a different portfolio's point estimate looks higher on the marketing graph. The full methodology is documented at Pass Lab Methodology.

The composition

Portfolio A-3 combines five EAs across five major and minor pairs. The selection prioritises low cross-EA correlation (so drawdowns don't stack on the same day) and roughly equal solo Sharpe so no single EA dominates the portfolio's risk profile.

EA Pair Lot type Weight Solo Sharpe Solo Max DD
Trend-Bot v3 EURUSD Dynamic 28% 1.31 6.4%
Range-Snap RX GBPJPY Fixed 22% 1.18 7.2%
Carry-Edge 2 AUDUSD Dynamic 19% 1.04 5.9%
Breakout-Hour USDJPY Fixed 17% 1.27 7.8%
Mean-Revert FX EURGBP Dynamic 14% 0.96 5.1%

Mean cross-EA correlation is 0.18 — weak positive — which is the headline win here: when one EA is in drawdown, the others have a 4-out-of-5 chance of being flat or up. The portfolio's combined max DD (8.2%) is below every individual EA's solo max DD because losses don't co-occur. That's the drawdown-stacking math working in your favour, not against you.

Mean cross-EA correlation is the most under-counted metric in EA portfolio sales pitches. A portfolio of "5 trend-following EAs across 5 majors" sounds diversified — until 2024-08-05 happens and every trend system on every major loses on the same Monday. A-3 deliberately mixes trend (Trend-Bot, Breakout-Hour), range (Range-Snap, Mean-Revert), and carry (Carry-Edge) to avoid that single-day-stacking failure mode.

Robustness

Robustness in this report is three numbers: the per-trial pass-rate distribution from 1,000 Monte Carlo replays, the walk-forward confidence interval across 24 sliding windows, and the Sharpe ratio bootstrap CI from 5,000 resamples. Each captures a different kind of "what if the trade order had been slightly different".

Monte Carlo: 1,000 trials

The same 3,517 trades were replayed 1,000 times with within-day order shuffled. Within-day shuffling preserves daily clustering (so daily DD remains realistic) but captures path-dependence: the same trades in different intraday order can pass or fail the daily-DD rule differently.

Monte Carlo trial outcomes — Portfolio A-3 vs FTMO Phase 1
CI low 71% CI high 84% 60% 75% 95% Trial pass-rate distribution (1,000 trials)

Distribution of pass-rates across 1,000 within-day-shuffled replays. The two dashed lines are the bootstrap 95% CI bounds. Mode falls at ~78% with both tails inside the firm's drawdown ceiling.

Walk-forward: 24 windows

A 30-day rolling window with 15-day stride generates 24 walk-forward observations across the 3-year backtest. Each window's pass-rate is computed independently; the dispersion across windows is what the bootstrap captures.

Walk-forward pass-rate by window — Portfolio A-3
95% CI 77.5% point 85% 75% 65% 55% 2023 2024 2025

24 overlapping 30-day walk-forward windows (15-day stride). Every window is independently inside the bootstrap CI band, no obvious time-of-year clustering or regime-shift collapse.

Sharpe ratio: bootstrap CI

Sharpe ratio across 5,000 bootstrap resamples of the trade list: point estimate 1.61, 95% CI [1.42, 1.78]. The lower bound (1.42) is what the report headlines — same principle as the pass-rate: anchored on the conservative side, not the marketing side. Sharpe values above 1.0 are normally considered tradeable; A-3's lower bound clears that floor with margin.

Risk profile

The single most-misleading statistic in shared-account EA portfolios is "max drawdown" computed from a merged trade list. When two EAs lose the same week, the merged-trade-list approach reports the sum of their individual drawdowns reduced by any overlap — which under-states the real shared-account drawdown by 15-30%. FXOptimize replays trades chronologically against a single shared balance, so every dollar lost by one EA is a dollar of equity unavailable to another.

Drawdown stacking is real. A merged-trade-list shows A-3's max DD as 6.7%. The shared-balance simulator shows 8.2%. The difference (1.5 percentage points) is the drawdown-stacking premium — exactly what would have hit your account on a real funded challenge during the worst 30-day window.

Drawdown distribution — 1,000 Monte Carlo trials
FTMO 10% ceiling p95 = 8.2% 3% 6% 9% 12%

Max-drawdown distribution across the same 1,000 trials. p95 lands at 8.2%; the long tail decays well before reaching the 10% FTMO ceiling. No trial breached the 5% daily-DD rule on any single day.

The headline number 8.2% is the 95th percentile of trial max DDs — i.e. the worst run we found in 95% of trials, conservative. It is not the average and not the best case. The remaining 5% of trials are in the long right tail (8.2% to ~10.4%), and even those did not breach the 10% rule by enough to reach the failure threshold across full evaluation windows.

Pass Lab cross-firm

Pass-rate against the V1 firm catalog. Each row is the same Portfolio A-3 evaluated against that firm's exact rule profile (drawdown type, profit target, daily DD limit, minimum trading days, consistency rules where applicable). Ranked by CI lower bound, not point estimate.

Firm / Challenge CI Low Point CI High Match
FTMO 2-step Phase 1 71% 77.5% 84% Strong · primary
FundedNext Stellar 2-step 62% 70% 78% Moderate
FundingPips 2-step 58% 64.5% 71% Moderate
The Funded Trader Standard 54% 61% 68% Moderate
FXIFY 2-step 49% 56% 63% Weak
The5ers Hyper Growth 42% 50% 58% Weak
FTMO 1-step (50% Best Day) 38% 45% 52% Weak
Goat Funded Trader Standard 31% 39% 47% Weak

Primary match: FTMO 2-step Phase 1. Highest CI lower bound at 71%. The single firm where A-3 clears the Strong threshold (≥70% on the lower bound). FTMO 1-step lands lower because the 50% Best Day rule fails portfolios with one dominant outlier day — Trend-Bot v3 had four such days across the 3-year backtest, and the rule fires deterministically on each.

The ranking by CI lower bound is the recommendation logic. A different portfolio (B-2, not shown here) had a higher FundedNext point estimate (76%) than A-3's (70%) — but B-2's CI was [54%, 76%], visibly wider. A-3 is the more stable backtest match for FundedNext on the lower bound, even though B-2's point estimate looks better in isolation.

What's not shown

For the same audit-grade reason the page surfaces conservative numbers, here's the honest list of what this sample doesn't claim:

What you should NOT do: read this page, assume A-3 is a real portfolio you can buy or copy, or use these numbers in any external claim. The portfolio name is a placeholder. The EA names are placeholders. The numbers are designed to look real, not be real. Run FXOptimize on your own backtests for real numbers.

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