When To Sell? Unveiling the Best Trade Exits: Backtest Comparisons

Last Updated on May 18, 2023

In a previous article, we highlighted the difference of changing the entry method: entry on the next day open (1) vs. entry on the same day close (2) vs. entry on the next day with a limit order (3).

For the comparison we created a portfolio with a maximum of 10 positions each and compared the performance metrics: CAGR, RAR, max. drawdown etc. We figured that alternating the entry type for a stock trading strategy, keeping all of the other rules the same, can change the metrics of the system significantly and, therefore, also the nature of it.

Today we’d like to analyze different exit techniques: exit on the next day open (1) and exit on the same day close (2). But we are doing it a little bit differently than last time. We’re not constructing a portfolio with a maximum of ten positions; all trades shall be considered.

Read the rest of the article: Members Only)

Similar Posts