252-Day Low Trading Strategy For Stocks (Complete Amibroker Code)

Is it a good idea to buy stocks setting 252-day lows? In this article, we backtest a 252-day low trading strategy for stocks.

No, it’s not a good idea to buy stocks that set new 252-day lows. The 252-day low trading strategy for stocks returned a negative 7.7% annually while using, on average, 40% of the capital.

252-day low trading strategy – trading rules

We make the following trading rules (with complete code for Amibroker):

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For this backtest we used Norgate survivorship free data and we the rotation function in Amibroker. We hold a max of ten positions each time. Commissions and slippage are not included in the backtest.

When we backtested the strategy on the stocks in the S/P 500 we got the following equity curve:

252-day low trading strategy
252-day low trading strategy

The trading statistics and performance read like this: 864 trades, annual return of minus 7.7%, 35% win rate, max drawdown is 89%, and you are invested 40% of the time.

The image below shows the full summary of the trading performance:

252-day low trading strategy performance and returns
252-day low trading strategy performance and returns

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