A time-based mean-reversion trading strategy for Nasdaq 100 & Dax40
The Idea
The well known turnaround tuesday strategy primarily based on time and day but also with added multi timeframe moving average filter using daily value. This strategy is extremely robust and the strategy works with a great amount of values for the MA and on a lot of different major indices.
Setup for Backtest
Market: US Tech 100 (1€)
Contract: 1 € per point
Broker: IG
Testing environment: ProRealtime 12
Timeframe: 1 Hour
Time zone: CET
No fees and commissions are included.
Result
Total gain: 8 243.4 €
Average gain: 107.68 €
Total trades: 258
Winners: 147
Losers: 111
Breakeven: 0
Max drawdown: –829.1 €
Risk/reward ratio: 1.58
Total time in the market: 8.46 %
Average time in the market: 1 days, 11 hours
CAGR (10 000 € in starting capital): 3.4 %
Entry Conditions
Long Entry
Today is Monday.
Time is 21:00
Close is below [Daily] Moving Average [70].
Exit Conditions
Long Exit
Today is Wednesday.
Time is 16:00.
Set Stop loss 1.6% down from entry
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 or instrument.
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.
If you want to start trading with ProRealTime, you can try it here for free:
Comments