The Nasdaq market's recent surge past its 2021 pinnacle, now standing 7% higher, signals a robust bullish momentum that cannot be ignored. In response to this promising development, we are doubling down on our commitment to provide long-oriented day and swing trading strategies that capitalize on this upward trajectory. Today we would like to unveil our latest offering in this domain: the Spica Strategy.
Inspired by Spica, one of the most luminous stars in the night sky, the Spica Strategy shines with a brilliance that matches its celestial namesake. This strategy employs 20-minute NQ bars to adeptly navigate the intricacies of market dynamics. At its heart, the Spica Strategy harnesses the analytical power of the Relative Momentum Index (RMI) in tandem with a dynamic Super Trend indicator available in TradingView. This synergy enables a sophisticated interpretation of market momentum and directional trends, piloting trades with the adeptness akin to navigating by the stars.
Performance Overview
Over the last four years, the Spica Strategy has proven its mettle, delivering an impressive $187K in net profits playing only the long side of the trade. This remarkable achievement is underscored by a steadfast management of risk, maintaining the maximum drawdown at a contained -$15K (these numbers have been adjusted for $1.5 commission per contract and 4 ticks of slippage). With a win rate of 52%, the strategy not only demonstrates its effectiveness in securing gains but also highlights its resilience, maintaining profitability even when the market conditions are less than favorable. Perhaps most compelling is the strategy's profit factor, standing at 2.06, which signifies its efficiency in maximizing wins over losses.
Spica Strategy Backtest Performance, 2020 - 2024
IMPORTANT: Please note that past performance of the Spica strategy is not indicative of future results. The historical returns and data presented should not be construed as a guarantee of future performance. Spica is a new strategy and, like all trading strategies, carries inherent risks. It is highly recommended to conduct thorough forward testing, such as paper trading, for a considerable period before committing any live capital. This process will allow you to understand the strategy's dynamics in real-time market conditions without financial risk. Trading in financial markets involves a level of risk and should only be undertaken after careful consideration and within the bounds of your risk tolerance.
Subscribers can download the Pine Script code for Spica strategy in the section Swing Trading.