The Turnaround Tuesday Trading Strategy (Setups, Rules, Performance Analysis and Insights)
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.
In this post, we look at the Turnaround Tuesday trading strategy. Buying on weakness on a Monday seems like a good trading strategy. The Turnaround Tuesday effect exists, but it improves by adding a filter.
We backtest the following trading rules:
Today is Monday.
The close must be at least 1% lower than Friday’s close.
If one and two are true, then enter at the close.
Exit at the close on Tuesday.
This simple trading strategy looks pretty good (Shown in the image below)
You can find more info about this trading strategy here:
https://www.quantifiedstrategies.com/turnaround-tuesday/