Four Up Days In Row — S&P 500

4th of November 2021, was the fourth day in a row with a higher close than the previous close in the S&P 500. How often does this happen?

Let’s test on the ETF SPY since its inception in 1993: It has happened 100 times, so it’s not rare. Let’s explore if this is a tradeable trading edge.

We test the following trading ideas:

1. Today is Thursday.

2. The close is higher than the previous close for the fourth time in a row (all days of the week are thus positive).

3. If 1 and 2 are true, let’s but the close and sell Friday’s open.

Statistics:

1. 100 trades

2. 0.12% in average gain per trade.

3. Profit factor: 2.15

4. Win ratio: 56%

The equity curve is shown below:

You can find more info about this trading strategy here:

https://www.quantifiedstrategies.com/four-up-days-in-row-sp-500/

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