January Effect (Back-Tested)

[bigbullinside]

I am just continuing from one of the posts I saw here.
Here are the back-tested results for the so called "January Effect".

Strategy:
1. Take the January high after the month ends.
2. In any of the following calender months, if the market manages to give a monthly close above this high, enter into a long position for the rest of the calender year.

I have also included the results for the January Effect on the short side.

Comments Welcome!

 

[bigbullinside]

This is frustrating, man!
130 views and no comments.
Seniors, please!
Shed some light on how this simple strategy can be improved upon.

 

[krish_sintu]

i can only say GOOD observation :clapping::clapping::clapping:

 

[a1b1trader]

Hi BBI
Couldnt get what you want to add, to the original January effect thread.

 

[calic]

Good observation bigbull.Somewhat similar observation here
http://www.traderji.com/advanced-trading-strategies/48912-real-magical-strategy-you.html

 

[bigbullinside]

My bad.
I know I should have looked through the forum before posting a similar thread.
Anyway, now you guys have two.

 

[a1b1trader]

My bad.
I know I should have looked through the forum before posting a similar thread.
Anyway, now you guys have two.

I am just continuing from one of the posts I saw here.

If you didnt see the original thread (posted by calic #5) then which post you saw and thought to continue

 

[bigbullinside]

I didn't mean to say here.
I actually didn't remember where i had seen it.
Now I see that it WAS HERE.

 

[cinderblock]

Hmm..no stoploss.

I wonder if someone (especially a trader) had enough faith in the strategy to go long at 5350 in Feb 2012 and sit through NF hitting 4800 in Jun 2012. Although the strategy's track-record's not bad!

Maybe, you should also include in your calculations the maximum draw-down (in % terms) for a particular year. For instance, in 2012 it was ~12%.

 

[a1b1trader]

I didn't mean to say here.
I actually didn't remember where i had seen it.
Now I see that it WAS HERE.

Then what do you meant by this here in your post #1.
And now, you just forgot in one day
Very Good Memory, you have got!!!!! :clap:

I am just continuing from one of the posts I saw here.