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The Watson envelope by Lux Algo is a popular trading indicator on YouTube with creators claiming it works well on all markets. In this video, the presenter will test the indicator 100 times to determine its true win rate. The backtesting will be done with an initial account size of $1000 and a 1:1.5 risk-reward ratio. The backtesting service used is Trader Edge, known for being fast and efficient, providing detailed information for traders to gain an edge in their competition. Thousands of new and professional traders use Trader Edge for backtesting purposes.