Weekly Trading Strategy – Backtest with Weekly Charts, Returns, and Performance Analysis
Most traders tend to focus on the daily and intraday charts. Only a few get to look at the weekly chart, let alone trade from them. But the weekly chart may provide more consistent setups that are easier to trade if you have the patients to wait for them. Want to know about weekly trading strategy?
The weekly trading strategy is a method of trading that focuses on the weekly price action. This can take any form: It could be positional trading based on the price action on the weekly chart or using the weekly chart to get a broader view of the market for a trend-following system on the daily chart, or even a weekly rotation system. It could also be a weekly swing trading strategy that focuses on capturing the price movement of the weekly price bars.
In this post, we take a look at the weekly trading strategy, and we’ll also make a backtest of a weekly strategy.
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What does weekly trading strategy mean?
The weekly trading strategy is a method of trading that focuses on the weekly price action. This can take any form, such as these:
- Trading based on the weekly chart
- Using the weekly chart to get a broad view of the market
- Swing trading weekly price movements
- Weekly sector rotation between assets
We hope you get the idea. The logic behind using a weekly system is that it trades less frequently than on daily bars, and it also might offer bigger gains. It’s more of position trading than swing trading on daily bars.
Trading based on the weekly chart
When you hear a weekly trading strategy, the common thing that pops up in your head is long-term or position trading because the weekly chart is such a high time frame chart that should give long-term trade setups.
That is right; most who trade on the weekly chart are long-term position traders. But they trade in different ways. Some are trend followers, while the majority look for range-bound markets on the weekly chart.
In fact, range trading seems to work best on the weekly chart. At least, range trade setups are more common than trend-following setups. Many trend followers t