I combine my swing trading strategy with seasonal patterns. This gives a higher hit rate and you can see the drawdowns of the last trades. So you can better assess your risk and set your stop loss more optimally.
But seasonal patterns are not trivial. A simple evaluation is not enough. You need...
All the studies are quite nice. I like the platform of https://www.stockmarketonline.com/seasonality-chart. There you can easily analyze the seasonal patterns of the SPY ETF and a few other stocks and shares for free (without registration).
Seasonality is more than that.
Prices are created by economic and business developments. Economic cycles repeat themselves and also profits and losses of companies repeat themselves. Seasonality is the result of repetition in reality.
The question is how to find good seasonal patterns and when...
The Sharp Ratio is an excellent ratio. But I think the Sortino Ratio is the better ratio.
The reason is that the Sharp Ratio measures volatility in relation to profit. But even the sharp increase in the portfolio is considered high volatility and then gives worse Sharpratios than slowly...
I can only agree with that. February is historically not the best month. But if you look at it closely, the bad period is from mid-February to mid-March.
The first image shows the seasonality of the major indices for February and March.
The second image shows the backtest of the SPX from...