Trading Edge 3

Instrument/asset

S&P 500 (SPY)

Trading rules

The trading rules of the edge read like this (please also backtest yourself – you might find a way to improve it):

  • The lowest volume over the last 10 days; and
  • The close is below the 200-day moving average; and
  • The close is lower than the day before.

Results

Trading performance if exit after N-days (100 000 and compounding):

The results indicate much better performance than any random day. 

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