Nasdaq100 - Buy high, sell higher

[tomorton]

Hello all.

This is a very simple spreadbetting strategy requiring only a short session at the NY Close using the D1 chart, and no technical or fundamental analysis as such.

Rules -
1. Set a buy order at the high of the day, stop-loss at the low.
2. Set a sell order at the low of the day, stop-loss at the high.
3. If an order is triggered, exit that position at the first profitable close.

Notes -
Win rate over a month or longer should be about 80%
Pending orders are not cancelled
Position sizes should be strictly managed as individual stop-loss losses are large in comparison with individual gains
Technical indicators and lower time-frame charts are not required
Ignore NFP's and other news events
If you wish, use long orders only, during uptrends - but note this introduces a subjective line of TA

Have fun!

 

[tomorton]

Anyone jumping into this strategy from Friday morning would have had an interesting ride to say the least.

Just to re-cap, if you had set orders at the available high and low daily levels immediately after my original post, you would have lost a couple of longs from Thursday and Friday for about 180pts each, but shorts from both Thursday and Friday would have ridden the steep fall in the index, which closed more than 500pts lower. So, a major and unexpected starting bonus.

Of course the starting situation in now way supported a long-term short on the Nas, but bracketing the daily ranges with buys and sells makes sure that shocks like these are effectively hedged. Maybe we'll get some more like these......