Which Day of the Week is Best to Trade?
Corona Del Mar, CA
Howdy Friend!
Kansas City Chiefs tight end Sean Culkin decided that he'll convert his entire paycheck into Bitcoin.
Now despite what you might be thinking, Sean is clearly in the minority here with his actions (he's very articulate about his views on gold and Bitcoin which he learned from his father BTW).
// Quick aside: My email checker bitches at me every time I say the word Bitcoin. It's a ridiculous word to be censored by our tech overlords. I'll check to see if our open rate is affected. //
One might assume he'll be receiving his paycheck and converting it to Bitcoin on a periodical basis.
Computer programs are perfectly suited to finding these kind of edges.
That begs the question: Is there a difference for which day of the week you place a trade?
The original "DB Transactions" strategy simply traded on a specific trading day of the month. There were clearly edges to be had on certain trading days.
So I did some simple programming and built a strategy that opens a basket of trades on a certain day of the week (and some creative stop losses for risk management). It's a momentum/anti-momentum strategy going back to 1988 (I run reallllly long tests for statistical significance. Anecdotal evidence is your enemy in trading).
Here are the results using our Portfolio Boss Score (PB Score combines compound annual growth rate with drawdowns. Higher numbers = better):
Monday: 23.34
Tuesday: 30.01
Wednesday: 28.10
Thursday: 24.3
Friday: 33.77
Annual growth rates before fees ranged from 34% on Monday's open to 45% on Friday's open. That's up to 11% a year difference! If you had a $100k account, that's a $184k difference in a decade.
That's why we test Friend.
Bitcoin, and just about everything tradable has these money flow patterns. It's just a matter of finding them with the right tool.
Quick, someone tell Sean!
P.S. Want to download my tool for discovering these edges? And some built-in strategies to boot?
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The Relaxed Investor (Downloaded by over 200,000 readers)
Disclaimer: The results listed herein are based on hypothetical trades. Plainly speaking, these trades were not actually executed. Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under (or over) compensated for the impact, if any, of certain market factors such as lack of liquidity. You may have done better or worse than the results portrayed.
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