Long-Term Trading Strategy | Backtest And Example Analysis

Some people hold their trades for short periods, even as little as a day, while others hold theirs for quite a long time. While the former is known as short-term traders, the latter are called long-term traders. But what does a long-term trading strategy mean?

A long-term trading strategy refers to a style of trading where a trader holds a position for an extended period of time. Depending on the type of asset, the holding period can be as little as one year or as long as 30 years or more. While there is no upper limit to how long an asset can be held in long-term trading, for tax considerations, it has to be held for, at least, one year to be considered a long-term trade.

In this post, we take a look at the long-term trading strategy. We go one step further and make a backtest of how you can invest in a long-term trading strategy and how you can supplement it with short-term swing trading strategies.

Long-term trading strategies

We have written many other long-term trading strategies:

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• Fundamental Analysis Trading Strategy (Backtest And Example)
• Bull Market Signal Strategy – How To Predict A Bull Market (Backtest)
• How likely are you to go broke as retired or FIRE? (Sequence risk, diversification, and withdrawal rate)
• Dollar cost averaging vs. lump sum investing backtest – sequence of return risk (luck, skill, or magic?)
• Lump Sum Investment Strategy (Buy & Hold, Example, Performance, Returns)
• How does war affect the stock market historically?
• Long-Term Trading Stra