Method

Systematic Stock trading system

Trading Systems

A robust trading system consists of a set of rules to determine entry, exit and trade management parameters.

They need not be over complicated and the fewer "moving parts" the system has the more likely the results will remain stable during different market conditions.

These rules have been tested and shown to be effective over a 16 year period, with consistent results.

Although there is no guarantee that the future will replicate the past, the system has shown stable performance over the entire test period.

FA(A)NG Stocks

The acronym FANG originates from the initials of five well known US companies; Facebook, Apple, Amazon, Netflix and Goggle.
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The system portfolio consists of these five stocks starting with data from 2008.

These well known companies are highly liquid, easily bought and sold and have shown tremendous growth for many years.

Trading Strategy

The trading system uses weekly data, thus trade decisions are made after the market close Friday and new signals are actioned the following Monday.

Thus this system requires very little time to implement and there is no need to watch the markets during the week. 

Buy and sell signals are generated using a simple momentum indicator-the winning trades, on average, are three times larger than the losing ones.

Click here for the rules, along with back-tested results and long term system performance.