2023 Strategy Review
Using the Alpha Signals strategy to take only 6 trades on TQQQ yielded 109% gains.
Have been using TradingView to combine all the strategy indicators together, identify the start or finish of an uptrend during the year and generate the buy or sell trading signals for 2023.
Simulating strategy with a $10.000 investment account:
| Date buy | Value buy | Qty buy | Date sell | Qty sell | Value sell | Amount | Gain |
| 13/01/2023 | 20.10 | 498 | 21/02/2023 | 498 | 22.35 | $11,119.40 | 11.2% |
| 22/03/2023 | 24.68 | 451 | 24/04/2023 | 451 | 26.71 | $12,034.01 | 8.2% |
| 28/04/2023 | 28.25 | 426 | 01/05/2023 | 426 | 28.17 | $11,999.93 | -0.3% |
| 05/05/2023 | 28.21 | 425 | 02/08/2023 | 425 | 42.02 | $17,874.40 | 49.0% |
| 01/09/2023 | 42.29 | 423 | 07/09/2023 | 423 | 40.38 | $17,067.12 | -4.5% |
| 07/11/2023 | 39.08 | 437 | 29/12/2023 | 437 | 50.7 | $22,141.83 | 29.7% |
| Total: | 121.42% |
Key Takeaways
- there were 3 main moments to make money in the stock market: January-February, May-July, November-December
- using the strategy to make only 6 trades on TQQQ yielded 121% gains
- drawdown was limited to -4.5%
A pertinent question would be why not just buy and hold at the beginning of the year for even higher gains. Well that is obvious in hindsight and impossible to predict.
A key characteristic of using multiple indicators combined into a strategy is to take advantage of uptrends as long as possible, and keep those gains during pullbacks or downtrends and minimize drawdowns.
Of course no indicator or strategy is flawless and accurate every time, 100% of the time, but it's the closest I've found to be on the right side of the market.
