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Turnaround Tuesday Strategy for Major Indices

Updated: Oct 2

A time-based mean-reversion trading strategy for Nasdaq 100 & Dax40


The Idea

The well known turnaround tuesday strategy primarily based on time and day but also with added multi timeframe moving average filter using daily value. This strategy is extremely robust and the strategy works with a great amount of values for the MA and on a lot of different major indices.


A screenshot of a drawdown/runup graph from 2007-2024 20
Runup VS Drawdown


Setup for Backtest

Market: US Tech 100 (1€)

Contract: 1 € per point

Broker: IG

Testing environment: ProRealtime 12

Timeframe: 1 Hour

Time zone: CET

No fees and commissions are included.


Result

Total gain: 8 243.4 €

Average gain: 107.68 €

Total trades: 258

Winners: 147

Losers: 111

Breakeven: 0

Max drawdown: 829.1 €

Risk/reward ratio: 1.58

Total time in the market: 8.46 %

Average time in the market: 1 days, 11 hours

CAGR (10 000 € in starting capital): 3.4 %


Backtest Results

Entry Conditions

Long Entry

  1. Today is Monday.

  2. Time is 21:00

  3. Close is below [Daily] Moving Average [70].

Exit Conditions

Long Exit

  1. Today is Wednesday.

  2. Time is 16:00.

  3. Set Stop loss 1.6% down from entry


Code

ProRealTime



FAQ

Q: Am I free to use this strategy however I want?

A: Sure! But we're happy if you refer to our website and keep the creator's name in the code.


Q: I'm using another platform, can you write the code in another language?

A: No, sorry. We might add code in more languages later to the website, but until then, we recommend you try ChatGPT or something similar to help you rewrite it.


Q: Why does my backtest look different when I run the code?

A: The strategy might give different backtest results for several reasons, like added spread or fees, the wrong time-zone settings, or that you're using another type of contract or instrument.


Q: Will I make money if I run this strategy live?

A: We don't know. We're not financial advisors, we're just traders sharing our ideas.


If you want to start trading with ProRealTime, you can try it here for free:



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