A Strategy For Each Day of the Week [Seriously?]

A different strategy for each day of the week? Sounds crazy, but is it?

I have wrote about “Turnaround Tuesday” before: https://www.seeitmarket.com/turnaround-tuesday-wall-street-cliche-media-fiction-17013/

This simple strategy is actually at new highs since this was published over 10 months ago!

But what about other markets? Is it possible to just trade one market per day of the week (from open to next day’s open) on a specific day of the week and still do well? If you would have followed this simple “portfolio” below for the past 15+ years then yes.. you would have.  You wouldn’t even of had to sit in front of the screens like the rest of us degenerates..

Strategy 1: Short Crude Oil on Mondays

Simple strategy dating back to 2003. Short Oil on Monday’s open and cover on Tuesday’s open. Results based on a 1 lot.

cl_monday

Strategy 2: Turn Around Tuesday

If Monday was a down day (Monday’s close less than or equal to Monday’s open) then buy Tuesday’s open and sell on Wednesday’s open. Results based on 1 lot.

es_turnaroundtuesday

Strategy 3: Long Gold on Friday's. Weekend Risk.

Maybe in lieu or anticipation of bad weekend news releases, buying Gold on Friday’s open and holding over the weekend to exit on Monday’s open has produced the following based on 1 lot.

gc_friday

Not a bad portfolio equity curve, right?! One of the hidden ‘holy grails’ in trading is combining systems together to smooth the equity growth of the account. No one single super star out of any of these 3 strategies but combined their curve starts to look rather nice.

portfolio

Sure these might not be alpha generators on their own but maybe they can be combined with some other price patterns, filters or targets and stops to become full strategies. They can certainly act as intermarket or multi-time frame filters for more complicated strategies.

For example, if you have a 60 minute mean reverting system that buys oil dips then maybe it should be turned OFF on Mondays! At the very least it is worth a look and this is all made very simple with Build Alpha – just point, click, test.

For example, did you know S&P500 has performed much better on even days than odd days? (April 6 is an even day).

evenvsodd

Anyway, I just wanted to show some simple things that can be tested in Build Alpha and how sometimes the most simple ideas turn out to work the longest. Maybe because people think they’re too simple and that they can’t work? I don’t know.

Either way I have put some python code (and TradeStation code) in the private Build Alpha users’ forum to specify day of the week as I know a lot of you are trying to learn python so I figured I’d help out a bit. But day of week is all point and click options pre-built into Build Alpha’s signal library for those of you who could care less about learning to code! Happy Friday.

Cheers fellas,

Dave


7 thoughts on “A Strategy For Each Day of the Week [Seriously?]

  1. Oil is virtually a 24 hour market – so what opening time and closing
    time is used for the ‘Short Oil on Mondays’ strategy. Or are you the
    Pit times. Your article does not make this clear.
    Look forward to your earliest reply.
    Thank you

    1. Hey,

      I used globex session – default session from TradeStation’s @CL data actually. I figured this would be easiest for most to replicate.

      Thanks for checking out the post,
      David

    1. Hey,

      Yep, these are all using the globex sessions as dictated by the exchange. Previous comments addressed this.

      Thanks,
      David

Leave a Reply

Your email address will not be published. Required fields are marked *

Login


Username
Password
(close)

Create an Account!


Username
Email
Password
Confirm Password
Want to Login? (close)

forgot password?


Username or Email
(close)

Risk Disclosure

FUTURES AND FOREX TRADING CONTAINS SUBSTANTIAL RISK AND IS NOT FOR EVERY INVESTOR. AN INVESTOR COULD POTENTIALLY LOSE ALL OR MORE THAN THE INITIAL INVESTMENT. RISK CAPITAL IS MONEY THAT CAN BE LOST WITHOUT JEOPARDIZING ONES FINANCIAL SECURITY OR LIFE STYLE. ONLY RISK CAPITAL SHOULD BE USED FOR TRADING AND ONLY THOSE WITH SUFFICIENT RISK CAPITAL SHOULD CONSIDER TRADING. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.

Hypothetical Performance Disclaimer

HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN; IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK OF ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL WHICH CAN ADVERSELY AFFECT TRADING RESULTS.