Tuesday, October 20, 2009

Trading Results Based on Monthly Trade Triangle Alerts

I did further backtesting using INO's monthly trade triangle strategy. The strategy is described here: Watch video . INO also offers a free online Trading course.

The strategy is extremely simple as consists on buying on green monthly alerts and selling on red monthly alerts. For example these are the alerts for INTC:

This time I looked at over 40 stocks, including the stocks with most trading volume on the market. The results were similar to those ones in the previous backtesting experiment. The ROI is very good on regular stocks (i.e., most stocks). The average ROI of the 30 stocks below is 96.19% (versus 32.53% of a buy and hold strategy).

Results for $10k investment:

(please click to enlarge)

Again, we found the strategy does not perform well for *some* gold miners as well as for some short leveraged ETFs, so we excluded all those (also excluding the winners to be consistent). The results for those are shown below. Note that this includes a mix of strategies (including using weekly triangles).

So there are the results. You may access the spreadsheet with all results here, containing all buy and sell dates here, or scroll the object below.

Again, if you wish me to do backtesting on any stock, just let me know. I also intend to do testing based on weekly and daily alerts. You can access a free trial of the tool here.

Note: You may also receive these triangle alerts of these stocks sent to you by email by entering the symbols in the Technical Trend Analysis Tool, (but the tool is far faster and more powerful).

Not intended as advice, just showing the results. Obviously past performance is not a guaranteed indication of future performance. Please see for yourself and do your own due dilligence.

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