I still have to say, those sell in May stats always blow me away
how basically all the money in the market has been made in one 6
month time frame of the year
$10,000 starting in 1950 turned into 2.8M in the good 6 months
of the year, and instead if you had invested $10,000 in the other 6
months of the year, your actually lost money, your $10,000 after 75
years turned into $7000! That's just insane to me
it's not really a strategy I could follow personally myself, to
me it's more fascinating just form a math/statistics standpoint.
But someone who doesn't look at the market at all and is pure buy
and hold, could follow it.
Also - what I don't show and will try to put together is that
one strategy would be to be invested in those good 6 months of the
year, and in the other 6 months invest that money in Tbills or
Money Market and make interest - I did that calculation once in the
past and instead of your $10K turning into 2.8M, with compound
interest it would be more like 7.5 million!
regarding the custom Sell in May and Go away statistics with the
MACD buy and sell filter -here's the Tradestation statistics on
that strategy, not bad PF of 6.3.
I'll do a video on this sometime, I need to add the historical
interest rate on Tbills for the other 6 months when one would be in
cash earning interest
anyway the sell in may and go away is not a strategy that fits
my personality and style, I simply find it fascinating from a
mathematical standpoint how the majority of the market gains have
been made in those 6 months of the year, while the other 6 months
lost money over 75 years
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I still have to say,
Updated Sell in May and go away statistics - with the MACD buy/sell filter
Posted by matt on 6th of May 2024 at 11:30 am
I still have to say, those sell in May stats always blow me away how basically all the money in the market has been made in one 6 month time frame of the year
$10,000 starting in 1950 turned into 2.8M in the good 6 months of the year, and instead if you had invested $10,000 in the other 6 months of the year, your actually lost money, your $10,000 after 75 years turned into $7000! That's just insane to me
it's not really a strategy I could follow personally myself, to me it's more fascinating just form a math/statistics standpoint. But someone who doesn't look at the market at all and is pure buy and hold, could follow it.
Also - what I don't show and will try to put together is that one strategy would be to be invested in those good 6 months of the year, and in the other 6 months invest that money in Tbills or Money Market and make interest - I did that calculation once in the past and instead of your $10K turning into 2.8M, with compound interest it would be more like 7.5 million!
regarding the custom Sell in
Posted by matt on 6th of May 2024 at 04:24 pm
regarding the custom Sell in May and Go away statistics with the MACD buy and sell filter -here's the Tradestation statistics on that strategy, not bad PF of 6.3.
I'll do a video on this sometime, I need to add the historical interest rate on Tbills for the other 6 months when one would be in cash earning interest
anyway the sell in may and go away is not a strategy that fits my personality and style, I simply find it fascinating from a mathematical standpoint how the majority of the market gains have been made in those 6 months of the year, while the other 6 months lost money over 75 years