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The Watson envelope by Lux algo is a popular trading indicator with claims of high accuracy across all markets. In this video tutorial, the creator tests the indicator 100 times to determine its true win rate. Backtesting is done with an initial account size of $1000 and a risk-reward ratio of 1:1.5 using Trader Edge, a fast and efficient backtesting service preferred by both new and professional traders for gaining a competitive edge. Trader Edge provides all necessary information for setting up initial account size, profit, and loss per trade.