All-Time High Trading Strategy For Stocks (Frequency)

The S&P 500 spent less than a tenth of its time at all-time highs since 1950. The average number of all-time highs per year is almost 21. But despite this, it has produced decent returns for investors.

In this post, we are going to look at how often the S&P 500 is at all-time highs, what this means to investors, and develop and backtest a trading strategy that takes advantage of all-time highs.

We backtest the following trading rules:

* We buy the S&P 500 when it is less than 5% away from its all-time high

* We sell when it falls more than 5% from its all-time high

We backtested the strategy in the S&P 500. The data is daily and not adjusted for dividends. The equity curve of the strategy is shown below.

We showed the performance metrics and statistics and explained a changed version of the strategy to improve the output. Check out here >>

https://www.quantifiedstrategies.com/all-time-high-strategy/