End of Month Trading Strategy 2024- S&P500 Outperformance!

End of Month Trading Strategy 2025- S&P500 Outperformance!

ByOddmund Groette Seasonal trading strategies

The end-of-month seasonality is strong in stocks. A more updated version of the end-of-month effect was made not so long ago.

Let’s make an update and see how it has performed since then:

End of Month Trading Strategy (S&P 500)

End of Month Trading Strategy

In plain English the strategy is like this:

  • Entry: Day 29, 30, or 31 of the month must be negative (this is calendar day – not trading days). Then enter at the close.
  • Exit: Two successive positive closes in a row OR SPY hits a 1% target. (no stops). Exit at the close.

Here are the results from 2005 until today:

The average per fill is 0.75% per fill. However, the equity chart is flattening lately, and 2014 was barely positive.

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FAQ:

– What is the end-of-month trading strategy for stocks?

The end-of-month trading strategy for stocks involves entering trades on the last calendar days of the month if they are negative and then exiting under specific conditions.

– How has the end-of-month trading strategy performed over the years?

The strategy has been tracked from 2005 to the present. While the average per fill is 0.75% per fill, it’s noted that the equity curve has flattened in recent years, and 2014 showed only minimal positive returns.

– What is the significance of the “end-of-month seasonality” in stocks?

The “end-of-month seasonality” refers to a historical pattern where the last days of a month tend to exhibit specific price behavior in the stock market. The strategy aims to exploit this seasonal pattern.

 

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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