Our Oversold Buy signal backtest of Bullish or Very Bullish Chaikin Power Gauge rated stocks produced a 70% win rate. What will the opposite Overbought Sell backtest on optional stocks results have in store for us? This week, we discuss our testing rules and share the results of a couple of sample trades. Full data next week!
We continue to find trades for our forward test of 2 strategies that produced extraordinarily high expectancies - the oversold buy and relative strength sell signals. More in this week's video.
Market is near resistance and overbought, but Power Bar ratios on the S&P are higher than we've seen in the past couple of years. In this week's video, we review our backtesting results and forward testing parameters for two Chaikin strategies on liquid optionable stocks and ETF's: Oversold Buy and Relative Strength Sell. While it's never "exciting" for us to say that "sitting on your hands" is the optimal strategy , we have figured out how to make your trading day last about a minute when following either strategy. But 70-80% win rates should get your attention.
We tested bearish rated, optionable liquid stocks and ETFs with negative Relative Strength and Money Flow trading below their long and short term Chaikin trendlines. We took bearish trades on Relative Strength Sell signals over the past two years and held for 3 - 6 months. The trades were 3/4 profitable, with gains on winners outpacing losses on losers by better than a 2:1 ratio. Watch the video for full coverage. Subscribe to Chaikin Analytics here.