We have compiled a new strategy bundle: 3 strategies for SPY and QQQ that hold positions from the close until the next day’s close – 24 hours.
What is a 24-hour swing trade?
A 24-hour swing trade is a trading strategy that enters at the close and sells at the close of the next trading day. Thus, you are only invested 24 hours!
Which strategies?
The strategies are previously published as monthly trading edges for our Gold and Platinum members. It’s strategies #18, #22, and #95. Thus, the strategies have out-of-sample periods (and we always put strategies in incubation for 12 months before we ever release anything).
BUY NOWWe have more details about the three different strategies here.
The benefits of a 24-hour swing trade
Because you are invested just a few hours, drawdowns tend to be lower.
Below we present all three trading strategies when all are traded as one portfolio of strategies. We show you the equity curve and the main trading performance and metrics for three different ETFs (no slippage and commissions are included, but those are very low, click here for our own commissions and slippage costs in trading).
Let’s start with S&P 500 and SPY:
- # trades: 946
- Average gain per trade: 0.33%
- CAGR – annual return: 10.1%
- Win rate: 62%
- Max drawdown: 15%
- Time spent in the market: 12%
For Nasdaq 100 and QQQ the performance looks like this:
- # trades: 863
- Average gain per trade: 0.33%
- CAGR – annual return: 11.1%
- Win rate: 58%
- Max drawdown: 23%
- Time spent in the market: 14%
Let’s backtest Nasdaq 100 with 2x leverage – QLD:
- # trades: 556
- Average gain per trade: 0.75%
- CAGR – annual return: 24.4%
- Win rate: 59%
- Max drawdown: 27%
- Time spent in the market: 12%
