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

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

ByOddmund Groette Trading strategies

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

252-day low trading strategy – trading rules

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

THIS SECTION IS FOR MEMBERS ONLY. _________________ BECOME A MEBER TO GET ACCESS TO TRADING RULES IN ALL ARTICLES CLICK HERE TO SEE ALL 400 ARTICLES WITH BACKTESTS & TRADING RULES

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

I’ve got an Msc from Heriot-Watt University, Edinburgh (1996), in addition a to a business administration degree the Norwegian School of Management (BI – 1994). Did my mandatory military service in between.

After university, I worked two years as an auditor (1996-1998).

I co-founded Aksjeforum.com in 1998/99 - one of the first websites about trading and investing in Norway. It was later acquired by Digi.no in 2001.

I have written 4 books about trading (in Norwegian). One of them has sold 30,000 copies, a record for a financial book in Norway.

From 2001 until 2018 full-time independent prop trader (Series 7 in 2001) and investor.

2018-today: Investor, writer, analyst.

Similar Posts