Korean KOSPI 200 Trading Strategy – Backtest, Futures Example, and Insights

KOSPI is a short form for Korean Composite Stock Price Indexes, and KOSPI 200, which comprises the 200 largest publicly-traded common stocks traded in Korea, is the most popular. KOSPI 200 futures are one of the most actively traded equity indexes in the Asian market and definitely the most traded on the Korean Exchange. Want to know about the Korean KOSPI 200 futures strategy?

A Korean KOSPI 200 futures strategy is the methodology or technique you can use to profitably trade the Korean KOSPI 200 futures market. KOSPI 200 futures refer to financial derivative products that represent a contract to buy or sell a specified amount of the Korean KOSPI 200 Index on a future date, at a pre-agreed price. The contract trades on the Korean Exchange and Eurex, and it is cash settled. You can use the Korean KOSPI 200 futures strategy to take positions on the performance of the KOSPI 200 Index, either for speculation, portfolio diversification, or hedging purposes.

In this post, we answer some questions about the Korean KOSPI 200 futures strategy. We also make a backtest of a trading strategy.