A Few Days A Month Make All Returns Since 1960 In Stocks

1 year ago
8

Welcome to our latest video where we present an investing strategy that has beaten buy and hold over the last 60 years! The strategy invests only during specific trading days of the month but still provides great returns.

In this video, we present a strategy that has beaten the buy and hold approach over the last 60 years. This strategy is invested only during specific trading days of the month, which makes it a seasonal pattern. By being invested only 7 trading days per month, the equity curve grows linearly all the time, with an annual return of 7%, which is more than buy and hold's 6.9%.

Before we dive into the strategy, we want to remind you that our website is a treasure trove of the best trading strategies out there, with free resources available for any time frame you're interested in. We have backtested hundreds of strategies just like the one you’ll learn about in this video.

So, what is the strategy? It’s based on a seasonal pattern that has existed for decades.

By being invested for only a few days per month, we get an equity curve that grows linearly all the time. The annual return is 7%, which is more than buy and hold's 6.9%. Even though the strategy is only invested 33% of the time, the drawdowns are much smaller at 27% vs 56% for buy and hold.

To better illustrate the difference, we made a chart in the video that shows the ride for our strategy compared to being invested all the time. Clearly, the red line shows fewer bumps along the way!

We also made some changes to the trading rules and improved the strategy, reducing the time invested in the market from 33% to 23% while still making 6.7% annual returns. However, these trading rules are only available for our subscribing members that receive a strategy monthly for a small fee.

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