Monday/Tuesday Trade In Nasdaq – Update

Last Updated on January 14, 2022 by Oddmund Groette

Previously we have written about the Turnaround Tuesday Strategy and the Monday/Tuesday trade strategy in Nasdaq (QQQ). How has this strategy performed during the Covid-19 mess?

Pretty good, actually. I’ve been trading this strategy, with these parameters:

  1. Today is either Monday or Tuesday.
  2. Internal Bar Strength (IBS) is 0.15 or below.
  3. If both criteria 1 and 2 are fulfilled, go long QQQ at the close.
  4. Exit at close if today’s close is higher than the close of yesterday.

This is all there is to it. In the previous article, the exit criteria were when higher than yesterday’s high, but to lower the risk of being “stuck” I lowered the exit to when the close is higher than the close of yesterday.¬†

This strategy has performed well since the year 2000, and the equity chart from 2010 is like below, assuming a 100% allocating of equity to this strategy:

Monday/Tuesday strategy in Nasdaq. Source: Amibroker.

The number of trades is 111, the average gain is 1.16%, win-ratio is 76% and max drawdown is 5.7%.