I wrote this strategy hoping to start some discussion on value trading vs. day trading and also to give a different option to people with little time available.
I adapted a buy-and-hold strategy based on the price index 6 months with an long-only-entry. When the close of the day crosses above 144% to the price registered 6 months ago we go long and we hold the stock for 1 year (apron 254 bars).
As I said it’s an adaptation made for automatic trading!! With Italian stocks the results are very good but might be MUCH better if you used Price to book (P/B) and Earning yields (EY) to confirm the entry. Running this strategy manually with the use of P/B and EY12 months, and using a portfolio, returned an average of 55% a year in the last 10 years (Only one year I didn’t beat the market).
// General parameters
DEFPARAM CumulateOrders = False
thr=44 // entry threshold
ref=close*(1+thr/100) // price entry level
ex=254 // number of bars in the trade
// conditions to enter long
c1 = (close CROSSES OVER ref)
IF c1 THEN
BUY 20000 CASH AT MARKET
// exit long position
IF barontrade=ex THEN
SELL AT MARKET
No information on this site is investment advice or a solicitation to buy or sell any financial instrument. Past performance is not indicative of future results. Trading may expose you to risk of loss greater than your deposits and is only suitable for experienced investors who have sufficient financial means to bear such risk.ProRealTime ITF files and other attachments :