Today, I had the idea to tell myself that simple strategies are often among the best.
Indeed, each action / index can have a behavior that is very specific to it.
For example, I take the S&P500 index.
It adopts a bullish behavior over the long term, it is not difficult to know that it is necessary to place only BUY orders.
That is why the strategy I propose only takes long positions.
The rule of entry is very simple :
We take a long trade if we you have 3 consecutive lowest closes.
And that’s all !
When do we close the trade ?
Seven days later (between 1 and 10, it is the value that gives the best results).
No stop loss or take profit.
I did not try to dig it any further, I admit. Of course I am far from the performance of the strategies that I use, but I wanted to show that with very simple things one can achieve a positive result…
Hi, thanks for sharing this idea. I moved your post from the pending review list of the library to the forum instead. It would seem that you forgot to introduce the fees, I made a test with only 2 points spread, please find it attached.
Yes sure, but since it is for automated trading purpose I made backtest on a tradable security with ProOrder. As you know, automated trading is still not available through Interactive Broker. However, the SP500 Index instrument is not tradable, you should use a Future contract instead (ESxxxx for instance).
You are right. Butc atually it was not for automated trading, but de take position according to the trading hours of the Index, in this strategy. Of course we take position on the CFD or Future.
I think that daily index candles are more representative of human behaviour than daily CFD candles…
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