Buying or Selling Stocks in a Volatile Market: Backtest Analysis with Historical Data

Volatility and bear markets are related: volatility “always” picks up when the market goes down. Is this good or bad for a trader or investor? Should you buy or sell stocks in a volatile market? Let’s find out:

Short-term traders should continue doing business as usual. If you’re a long-term investor and have many years left until you are going to withdraw money from your account, you should buy when volatility picks up — not sell.

Let’s look at how the strategy has performed overall (shown in the image below) since the year 2000 (we backtest QQQ — the ETF for Nasdaq 100).

You can find more info about this trading strategy here:
https://www.quantifiedstrategies.com/buy-or-sell-stocks-in-volatile-markets/