Longer term readers and members will know that I try to keep Marwood Research updated with new trading strategies and information on a monthly basis.

This month we have added a brand new trading strategy to the program called Trading For Yield.

Trading For Yield is a mean reversion strategy that looks at US treasury yields in order to trade a watchlist of five purposely selected ETFs.

US treasury yields are probably the most important cog in the entire global financial system so it makes sense that they might make a worthwhile contribution to a trading strategy.

The result is a simple but impressive system that makes economic sense and shows a win rate of over 75% with a profit factor over 3 in historical simulations.

Not only that, but this system made money every year we tested between 2007 and 2017!

Based on a sample of 236 trades over 10 years of historical data this system has two other significant factors in its favour.

First, the system is based on a concept that makes sound economic sense. Using the price dynamics of economic yields to take trading decisions.

Second, the system operates in an area that very few people are looking at.

Both of these two factors lend extra credibility and robustness to the model and increase its chances of success.

Interesting Charts

Following are now shown some interesting charts from the Trading For Yield model:

Trading for yield System equity curve

System equity curve

Trading for yield System equity curve

Some results

profit table trading for yield

Profit table

monte carlo trading for yield

Monte Carlo results

 

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