Short-Term Trading Strategy – Rules, Performance, and Backtest Analysis

Because of its potential for quick profits, the short-term trading strategy is the most popular trading method among retail traders. Unlike traditional long-term investing methods, this strategy offers an exciting opportunity to profit from relatively minor changes in market conditions. But what exactly is the short-term trading strategy?

A short-term trading strategy is a trading strategy that aims to open and close positions in a short period, typically a few days or weeks, but it can be even shorter. Traders who make use of this strategy focus on the analysis of price movements rather than the long-term fundamentals of an asset.

In this post, we take a look at the short-term trading strategy, and at the end of the article, we make a backtest to help you get started.