Nasdaq Trading Strategy (Backtested)

The Nasdaq trading strategy involves buying into the market under specific conditions: on Mondays or Tuesdays when the Intraday Buying/Selling (IBS) indicator is at 0.1 or lower. Trades are exited when the closing price surpasses the previous day’s high.

One very simple Nasdaq Trading Strategy:

  1. Today is Monday OR Tuesday.
  2. IBS (c-l/h-l) is 0.1 or lower.
  3. If conditions 1 and 2 are fulfilled, go long at the close.
  4. Exit on the first close higher than yesterday’s high (code in Amibroker is c>ref(h,-1)).

This is all there is to it.

Here is the equity curve from 2006 until today with one contract NQ (Nasdaq futures):

Nasdaq Trading Strategy

86 trades, 600 profit per contract, and the profit factor is 4.13.

Monthly results:

Nasdaq Trading Strategy performance

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

What are the specific conditions required for a long trade in the Nasdaq trading strategy?

The conditions for Nasdaq Trading Strategy are that it must be either a Monday or a Tuesday, and the Intraday Buying/Selling (IBS) indicator should be at 0.1 or lower.

How is the exit point determined in the Nasdaq trading strategy?

The exit point in Nasdaq Trading Strategy is determined by the first close higher than yesterday’s high,.

Can you summarize the overall performance of the Nasdaq trading strategy?

The Nasdaq Trading Strategy yielded 86 trades with a profit of $600 per contract, resulting in a profit factor of 4.13, spanning from 2006 until the present day.

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