A simple, yet effective trading strategy

V

vii_dt

Hey everyone,
This strategy is great for those who want to avoid the volatility of intra-day trading and capitalize on the difference between the opening and closing prices.
I go over the basic concept of the strategy, as well as some examples of how it's been applied in the past. I also share some tips on how to implement it in your own trading.
Check it out and let me know what you think! :D I'm looking forward to your feedback.
Link to video:
 
I like it. I watched it fast and was not paying perfect attention, but did I understand that the strategy provided returns of 3ish to 4ish percent a year? I must be misunderstanding it.


EDIT: Welcome to the best forum on the planet, by the way!!!
 
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"moaket", sounds like the Mootch. Italian background, am I right? ;-)

vii_dt said:
Hey everyone,
This strategy is great for those who want to avoid the volatility of intra-day trading and capitalize on the difference between the opening and closing prices.
I go over the basic concept of the strategy, as well as some examples of how it's been applied in the past. I also share some tips on how to implement it in your own trading.
Check it out and let me know what you think! :D I'm looking forward to your feedback.
Link to video:
More...
 
On the surface it sounds like a disaster waiting to happen. It might eventually be profitable but I bet you'll have to sit through some nasty drawdowns and some traders just dont have the mental make-up to handle that.
 
It is a nonsense approach to trading, like so many strategies it works until it does not. There is zero inherent edge in the logic to trading the close and next open, unless there are other filters or signals added which correlate with open vs previous close performance.

Market dynamics ensure that it sometimes produces a profit across multiple trades and at other times the same assets are opening lower than the previous close over prolonged periods of times. Most often, however, there is no consistency.

This should be very easy to verify by simply subtracting the open from the previous close over the past 500 days, for example.
 
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