What you can expect:
Traders always say, “You should backtest your strategy,” but how can you do it efficiently and effectively?
Good news: The WeWave team has organized a repeatable method for you to backtest any stock.
For whom: If you are engaged in swing trading or managing your own retirement account and seeking a no-code way to backtest charts, this post is for you.
Not-Really-A-Secret: Reputable institutions have a strong arm in low-frequency equity trading teams whose positions could be open for 5-10 days. Swing trading allows them to invest more capital in the market compared to high-frequency trading. In short, the professionals also do longer horizon strategies.
First, let’s check out a chart from Mar 24, 2024. In the last 12 daily bars, $NVDA had a strong breakout. What would you guess the return for the next 6 days will be?
It turns out that the return for the next 6 days is -5%.
Don’t be surprised that swing trading Nvidia can also lead to losses with poor entry points and assuming Nvidia will only ascend in a straight line.