5a91cca709614Equity_Graph.jpg

5a91deb27fa9aMonthly_returns.jpg


Right here goes...

For those interested I have done extensive research into my swing trading strategy, inclusive of back testing which is represented by the above equity graph.

These are the parameters:-

10,000 each position

£200 max Stop Loss

I trail the stop loss

Technicals:-

MACD

RSI 

MA's

Price action

Volume


The summary of the back test is as follows including US and UK stocks;-

639 positions

320 win

319 loss

Avg win = £705 Avg loss £198 = 3.57 ratio.

Avg trading costs £70 per position (includes Commision and Spread)

ps * Seems like a coincidence to have it such close to a 50% strike rate, but each month varies between 45% and 62%*


I used leverage 'safely' by incorporating the 2% stop loss.

For comparison.....


Non leveraged return:-

Turnover £6.36 Million

Net Return 1.9%

Equating to the £121,379 Net profit


Leveraged return:-

Leverage used i.e £200 stop loss X 639 positions = 127800

Net return 95%


Max drawdown £4500


I have a huge amount of back test knowledge as such absolutely no backfitting has taken place, additionally I have gone through every single chart at each point in time to ensure nothing is at fault.

On average 3 positions are at play at anyone point I,e £30,000 or how I like to see it is 3 x £200 stop loss = £600.

The curve would actually be smoother than shown because the steps up are as a result of closing trailed profit positions.

Holdings from beginning of week:-

You will note i'm only going to use stocks above 70 Stock Rank going forward - This I have not back tested but because I'm using hard cash I just want that extra psychological safety net that a stock will not go out of business over night.

5a91d5ed850fcstocko.jpg

See MY IG index account showing the status from Monday

5a91d73e15583IG_Week_1.jpg


Happy for your feedback....

And i'll keep you posted.

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