4th Free Strategy!

ByOddmund Groette Blog

The 4th strategy is a pullback strategy backtested on the Nasdaq 100.

Trading Rules

Trading Rules (Plain English) (Nasdaq 100 – QQQ)

  • Yesterday’s IBS was at least 0.5 or higher.
  • Yesterday’s low was lower than the lowest low during the seven days before.
  • Today’s close is lower than yesterday’s close.
  • Exit when the close is higher than yesterday’s high.

Amibroker code

Buy= ref(ibs,-1)>0.5 AND Ref(L,-1)<Ref(LLV(L,7),-2) AND C<Ref(C,-1) ;
buyPrice= C;
Sell= C>Ref(H,-1) ;
sellPrice= C ;

Performance

Strategy type: Pullback strategy.

Market: QQQ.

Performance

  • No. of trades: 179
  • Average gain per trade: 1.3%
  • Win ratio: 77%
  • Profit factor: 3.5
  • Annual returns (CAGR): 8.5%
  • Exposure/time in the market: 8%
  • Risk-adjusted return: 100% (CAGR divided by time spent in the market (0.08))
  • Max drawdown: 17% (buy and hold 82%)

Commissions and slippage of 0.03% per trade are included.

Disclaimer

We are not financial advisors. Please do your own due diligence and investment research or consult a financial professional. All articles are our opinions – they are not suggestions to buy or sell any securities.

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.

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