SP500 long-term investment with weekly MACD

• 12/31/2018 at 5:24 PM #87796
  Carlos GC

  Hi all,
  Happy new year for all

  I am thinking of a long-term investment strategy on the sp500 index. It’s very simple but I like the equity curve. for 69 years he has always been positive avoiding the different crashes of 2000, 2008 and 2018.

  It is about opening LONG positions when MACD crosses above 0 line and close positions when MACD crosses below 0 line, weekly timeframe.

  I like equity very much, it is safe for our long-term investments, but not very profitable.

  Someone suggests some idea to increase this profitability?

  Backtesting since 1950 (69 years), profit + 259% (+ 3.75% per year), Max Drawdown 38,675 $ (38%), Capital 100.000 and SP500 1:100

  thank you all for collaborating

  

  Carlos GC

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  12/31/2018 at 6:21 PM #87801
  Carlos GC

  screenshot BACKTEST 

  http://subirimagen.me/uploads/20181231111923.JPG

  

  Carlos GC

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  01/03/2019 at 1:34 PM #87942
  Nicolas

  Hi Carlos, thanks for sharing the idea.

  38% drawdown is a high risk to gain only 3.75% on average per year. Did you include market fees? Does it beat the market / buy&hold? : Buy and Hold comparison for automated trading strategies

  Bear in mind that every strategy buying an asset we all know is ascending since decades, will give you the same kind of equity curve. I know it looks good, but I think that you should investigate more in the numbers than on the look of the equity curve. Sorry to be an hassle in your experimentation 🙂

  

  Nicolas

  Keymaster

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