Monday/Tuesday Trade In Nasdaq — Update System (Enhanced Trading Strategy)
The Turnaround Tuesday effect happens from the close of Monday’s trading session until (at least) the close of Tuesday’s trading session. The effect is no myth! Let’s do some backtesting to find what seems to work and not work.
We backtest the following trading rules:
Today is either Monday or Tuesday.
Internal Bar Strength (IBS) is 0.15 or below.
If both criteria 1 and 2 are fulfilled, go long QQQ at the close.
Exit at close if today’s close is higher than the close of yesterday.
This strategy has performed well since the year 2000, and the equity chart from 2010 is like below, assuming a 100% allocating of equity to this strategy. The equity curve is shown below.
You can find more info about this trading strategy here:
https://www.quantifiedstrategies.com/monday-tuesday-trade-in-nasdaq-update/
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