Rosh Hashanah Trading Strategy | (Backtest, Performance, Code)
Rosh Hashanah in commonly known as the Jewish New Year. This, of course, means a lot for Jewish people, who celebrate it during a three-day holiday. But during that timeframe, the market is generally open. Can we make a profitable Rosh Hashanah trading strategy?
The stock market does not perform well during Rosh Hashanah. For the last 90 years returns have been negative.
We will also show you the python code we used to backtest the Rosh Hashanah trading strategy. Lets get to it.
What Is Rosh Hashanah?
Rosh Hashanah Trading Strategy – Backtest
The trading rules of the strategy are very simple:
THIS SECTION IS FOR MEMBERS ONLY. _________________ BECOME A MEBER TO GET ACCESS TO TRADING RULES IN ALL ARTICLES CLICK HERE TO SEE ALL 400 ARTICLES WITH BACKTESTS & TRADING RULESFor example, in 2023, Rosh Hashanah was from the afternoon of Friday, September 15, to the afternoon of Sunday, September 17.
THIS SECTION IS FOR MEMBERS ONLY. _________________ BECOME A MEBER TO GET ACCESS TO TRADING RULES IN ALL ARTICLES CLICK HERE TO SEE ALL 400 ARTICLES WITH BACKTESTS & TRADING RULESLet’s look at how the trading rules performed for S&P 500. The data is adjusted for dividends and splits. Here is the equity curve:
The returns are negative. The compounded return was -15.73%.
Until the 1940 the Rosh Hashanah was very bearish, but after that and for SIXTY year the strategy did OK for holding only 3 days of the year. However, after the 2000 the returns became negative again.
Is the stock market open on Rosh Hashanah?
The U.S. stock market, including the New York Stock Exchange (NYSE) and NASDAQ, generally remains open on Rosh Hashanah. While the NYSE and NASDAQ observe certain federal holidays and might close for specific events or days of mourning, religious holidays like Rosh Hashanah and Yom Kippur are not among the days that these stock exchanges are closed. Trading continues as usual on these days.
Related reading:
Conclusion
To sum up, today you learned what Rosh Hashanah is and how does the SPX perform during that timeframe.
As we saw, it was not good. It seems like the Jewish New Year doesn’t hold any significant seasonality.
Rosh Hashanah Trading Strategy – Code
We have the Python code ready-made for you: