4 Dow Jones Futures Trading Strategies – Backtest

A Dow Jones futures strategy is what to use to trade the DJIA futures market. DJIA futures refer to financial derivative products that represent a contract to buy or sell a specified amount of the Dow Jones Index on a future date, at a pre-agreed price. The contract trades on the CME platform and is cash-settled.

Individual stock investments can provide a lot of profit, but the downside risk is significant as well. As a result, investors go for equity indexes, which spread their risks across many stocks, and one easy way to trade indexes is via futures. The Dow Jones Industrial Average (DJIA) — a benchmark that measures the performance of 30 blue-chip companies in nine different industries in the United States — is one of the most popular equity index futures. What is a Dow Jones futures strategy?

In this post, we answer some questions about the Dow Jones futures strategy and we make a backtest