Buy-dip on recovery
Buy when the stock price drops from the all-time-high and sell when it recovers.
Buy only if the stock has started recovering from the drop in the recent days.
|Reference symbol||Symbol of the stock or index that triggers buy or sell trades in the investment symbol|
|Investment symbol||Symbol of the stock to be traded|
|Decline from all-time-high to open||Percentage decline of the reference symbol from the all-time-high that opens the position in the investment symbol|
|Advance over open price to close||Percentage advance of the reference symbol that closes the position in the investment symbol|
|SMA period||Number of days used to establish short-term growth: set it to 1 to constrain one-day growth. The stock has started recovering if price > short-term Simple-Moving-Average|
|Advance over SMA threshold to open||Minimum advance above the Simple-Moving-Average that indicates short-term growth. The stock has started recovering if price > short-term Simple-Moving-Average. Set SMA threshold to 0% and period to 1 to constrain to one day reference growth of 0%.|
Buy Facebook (FB) each time it over 7% from the all-time-high and close the position once it recovers 7%. Buy only if the stock has started recovering and closed higher the previous day. Invest for the period of 3 years.
Simulation on a single period
Note: We quote the results for just the most recent 3-year period from 2016-02-25 to 2019-02-24. Review the simulation for other periods.
|Annualized return||5.61%||Compound annual return (CAGR) over the period|
|Max drawdown||-9.74%||Maximum loss relative to the initial value experienced over the period|
Note: We simulate over all 3-year periods since Facebook's IPO in 2012.
|Percentile 20% of annual return||20.68%||80% of the periods produced this annualized return (CAGR) or better|
|Percentile 20% of max drawdown||-13.48%||80% of the periods experienced this max draw-down (relative to the initial investment) or better|