Market-Neutral Trading Strategies (Rules, Backtest, Returns)

A market-neutral strategy is a type of investment approach that enables an investor to benefit from both rising and falling stock prices. This is achieved by taking long positions in one stock and short positions in another stock. The strategy is designed to reduce exposure to specific market risks and can be applied in one or more markets.

In this post, we take a look at market-neutral trading strategies, and we finish the article with a market-neutral trading strategy backtest.