Candlestick Patterns: How efficient is the "Inverted Hammer" Candlestick on BTC trading?

Besides the "Bullish Engulfing pattern" and the "Hammer Candlestick" , among the most known Candlestick pattern used in the identification of Reversals of a bearish trend, there is also the "inverted" version of the latter which is called, obviously, "Inverted Hammer".

As usual with any pattern, an Inverted hammer candlestick does not indicate a price reversal to the upside until it is confirmed. Confirmation occurs if the candle following the hammer closes above the closing price of the hammer but, in this case, what we are looking is how reliable and efficient the particular pattern can be, so, I simulate an automatic trade, open the position automatically when the pattern closes and see what is the result of the decision.

Again, in the real "trading world", the use of only one indicator/pattern in order to set up a trade is not the best practice but, for the specific case, we want to "isolate" the identified pattern and see which is the output of an hypothetical trade, without taking into account other aspects.

As a consequence, my assessment keeps the following requirements as assumptions of the trade:

Entry done on the opening of the next candle after identifying the pattern (see below "entry")
VERY IMPORTANT: Risk of Loss limited always to the bottom of the previous candle of the pattern (see below "Stop Loss"). The assumption is to set a stop loss always there, limiting the risk but it could be different depending on your risk management.
The profitability of the pattern is taken as the maximum achieved before falling below the Stop Loss, of course, it depends on the trader to close position depending on other observations or targets but, here, I just want to see the potential of the indication not the real output.

Assessment on the 4-Hours Chart since July 2019.

The recurrence of this signal is very poor, actually I found only 5 "Inverted Hammers" in the 4h-chart:

Only 2 Out of the 5 had positive outputs, with substantial potential gains, the rest were a fail, despite the losses obtained were really low due to the assumed set-up:

I keep the following data as the most important:

Percentage of Success indicator: 66.67%
Average of Potential profitability: 20%
Reward/Risk ratio: I would take the average potential profitability divided by the maximum potential loss (remember that is cut due to our stop loss assumption explained before) = 3.17 so, for every USD you put under risk you might can obtain 3.17 USD
(Again, WE NEED MORE DATA in order to confirm this output, the fact that we have only 5 indications within the interval of time does not provide certainty)

Assessment on the 1-Hour Chart since early July of 2020.

10 indications found in this intervals and time-frame:

4 out of 10 signals failed to deploy a positive output, however, the ones in profit demonstrated a high potential.

Percentage of Success indicator: 60%
Average of Potential profitability: 9.45%
Reward/Risk ratio: I would take the average potential profitability divided by the maximum potential loss (remember that is cut due to our stop loss assumption explained before) = 39.38 so, for every USD you put under risk you might can obtain 39.38 USD

Summary

The use of this indication on the 1Hour time-frame seems to provide good results with an outstanding Reward/Risk ratio. Maybe could be good also to investigate if a less strict Stop Loss strategy and so, admitting a higher risk,can also provide even higher potential profits.

This assessment just provide some more light on the statistical output of a famous pattern. I will try to complete the assessment with more data as soon as they appear.

Hope you have enjoy it.