Monday/Tuesday Trade In Nasdaq – Update

In 2018 I wrote about a potential Monday/Tuesday trade strategy in Nasdaq. How has this strategy performed during the Covid-19 mess?

Pretty good, actually. I’ve been trading this strategy, with these parameters:

  1. Today is either Monday or Tuesday.
  2. Internal Bar Strength (IBS) is 0.15 or below (Google IBS if you don’t know this indicator).
  3. If both criteria 1 and 2 are fulfilled, go long QQQ at close.
  4. Exit at close if today’s close is higher than the close of yesterday.

This is all there is to it. Previously I had an exit set to close being higher than yesterday’s high, but to lower the risk of being “stuck” I lowered the exit bar.

This strategy has performed well since year 2000, and the equity chart from 2010 is like below, assuming a 100% allocating of equity to this strategy:

Monday/Tuesday strategy in Nasdaq. Source: Amibroker.

Number of trades is 111, average gain is 1.16%, win-ratio is 76% and max drawdown is 5.7%.