10-Day Momentum on Nasdaq
- May 30, 2024
- 2 min read
Updated: Aug 6, 2024
A Simple Momentum Strategy for Nasdaq 100
The Idea
This concept is somewhat unusual, as it buys on momentum and sells on further momentum. The entry is based on the momentum indicator and the exit is based on a candle pattern. To avoid overbought territory, there's also an RSI filter to reduce the number of trades.
Setup for Backtest
Market: US Tech 100 (Nasdaq 100)
Contract: 1 € per point
Broker: IG
Testing environment: ProRealtime 12
Timeframe: Daily
Time zone: CET
No fees and commissions are included.
Result
Total gain: 9 528.2 €
Average gain: 24.3 €
Total trades: 392
Winners: 277
Losers: 114
Breakeven: 1
Max drawdown: –1 214.0 €
Risk/reward ratio: 1.3
Total time in the market: 15 %
Average time in the market: 3 days, 10 hours
CAGR (10 000 € in starting capital): 1.93 %
Entry Conditions
10-day momentum crosses over 0.
2-day RSI is less than 90.
Exit Conditions
The close is higher than the close five days ago.
Code
ProRealTime
FAQ
Q: Am I free to use this strategy however I want?
A: Sure! But we're happy if you refer to our website and keep the creator's name in the code.
Q: I'm using another platform, can you write the code in another language?
A: No, sorry. We might add code in more languages later to the website, but until then, we recommend you try ChatGPT or something similar to help you rewrite it.
Q: Why does my backtest look different when I run the code?
A: The strategy might give different backtest results for several reasons, like added spread or fees, the wrong time-zone settings, or that you're using another type of contract.
Q: Will I make money if I run this strategy live?
A: We don't know. We're not financial advisors, we're just traders sharing our ideas.