ASX 100 Accumulation Strategy
The ASX 100 Accumulation strategy is based around an aggressive entry rule using the Accumulation signal as the entry point. The system is best described as an aggressive pullback trading approach with fixed profit and loss objectives. A trader can expect a signal on average every 2 trading days. As you can see from the attached profit chart, the system has moderate drawdowns with steady profit growth. All entry and exit positions are calculated at the closing value of the day the signal was triggered.
Period in test: July 1994 – August 2004
Market: ASX top 100
Entry rule: Accumulation Indicator - period 30, percent drop 3 and volume 1
Exit rules: 15% profit and 5% stop loss
Accumulated Profit Graph
IMPORTANT: You should be aware that 'back tested' systematic approaches to trading or investing can be powerful. However, any theoretical returns that are generated across a historical period are by their nature historical and probabilistic. There is no guarantee that historical returns on any particular trading system will be repeated in the future. This system has not taken into account any brokerage, associated fees or slippage.
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