End Of Month Trading Strategy (Trading Rules & Backtest)

End-of-Month Trading Strategy (Outperforms Buy-and-Hold)

The end-of-month trading strategy consistently delivers strong performance, often outperforming the buy-and-hold approach despite its relatively short exposure period. This strategy involves taking a long position at the closing price by the end of the month and exiting the position after seven days, specifically at the close of the third trading day of the following month.