Q2. Improved Index Trend (SPY) Performance Analysis

Mar 04, 2021

This is the second strategy we discuss in our course. The performance has been stellar as seen below. The strategy has beaten the SPY buy and hold in the drawdowns and the reward perspective. The performance was absolutely amazing with 728% returns with a drawdown of 34%.  The strategy discussed during the course was from 1 January 1994 to January 30 2021. Scroll down for year by year performance. The strategy was able to avoid massive draw downs during both dotcom bubble and global financial crisis due to certain conditions and filters that we made which we discuss thoroughly in the course. The strategy initially only gave net profit of 572% but we were able to improve this adjusting our variables by using Optimization and Walk forward analysis. Once you go through this video you will be able to apply this tools to any strategy to improve your returns.