Buy Monday Sell Wednesday Trading Strategy
This strategy trades the weekly cyclical pattern by entering long on Monday close and taking profit before Wednesday open to capture the price swing during this period. It is a typical mechanical system.
Strategy Logic:
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Execute long entry on every Monday close.
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Take profit to exit long before every Wednesday open.
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Set stop loss percentage to limit loss.
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Set take profit target percentage to lock in gains.
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Plot stop and profit lines for visual P&L.
Advantages:
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Cyclical trading has smaller drawdowns and good historical returns.
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Fixed rules easy to automate and execute.
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Simple stop loss and take profit configuration.
Risks:
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Cannot adapt to events disrupting the cycle.
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Lagging stop loss Unable to limit loss on single trade.
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Locked in profit Unable to track further upside.
In summary, this mechanical cyclical system has impressive backtests but struggles to adapt when the pattern changes. Investors should apply prudent discretion.
/*backtest
start: 2023-08-12 00:00:00
end: 2023-09-11 00:00:00
period: 4h
basePeriod: 15m
exchanges: [{"eid":"Futures_Binance","currency":"BTC_USDT"}]
*/
// This source code is subject to the terms of the Mozilla Public License 2.0 at https://mozilla.org/MPL/2.0/
// © processingclouds
// @description Strategy to go long at end of Monday and exit by Tuesday close, or at stop loss or take profit percentages - 1