Trading Method 1st of every month

[laptop1]

The rules are simple to follow. Its based on long trades trading the Dow once a month.

Rules
1, Buy on the 1st of every month. if the 1st falls on a weekend no trade.

2, Buy at the close prior to the 1st of the month.

3, Hold the trade till till the close on the 1st, with no stop. That's it, test it for yourself it works! it also worked through the little bear market we had from 1999 to 2003.

 

[fibonelli]

........with no stop......

Hi Laptop,

Thanks for sharing this strategy with us.

But, I have a slight query about the lack of a stop

In the famous words of John McEnroe "You cannot be serious"

 

[sjerar]

The rules are simple to follow. Its based on long trades trading the Dow once a month.

Rules
1, Buy on the 1st of every month. if the 1st falls on a weekend no trade.

2, Buy at the close prior to the 1st of the month.

3, Hold the trade till till the close on the 1st, with no stop. That's it, test it for yourself it works! it also worked through the little bear market we had from 1999 to 2003.

You mean DIA?

 

[laptop1]

You mean DIA?

No DIA is the Diamonds Trust.........The method is based on the $INDU = the DOW30 Index

 

[TheBramble]

The rules are simple to follow. Its based on long trades trading the Dow once a month.

Rules
1, Buy on the 1st of every month. if the 1st falls on a weekend no trade.

2, Buy at the close prior to the 1st of the month.

3, Hold the trade till till the close on the 1st, with no stop. That's it, test it for yourself it works! it also worked through the little bear market we had from 1999 to 2003.

What's the drawdown on the period you tested?

 

[Hoggums]

The rules are simple to follow. Its based on long trades trading the Dow once a month.

Rules
1, Buy on the 1st of every month. if the 1st falls on a weekend no trade.

2, Buy at the close prior to the 1st of the month.

3, Hold the trade till till the close on the 1st, with no stop. That's it, test it for yourself it works! it also worked through the little bear market we had from 1999 to 2003.

I don't understand - 1 you buy on the 1st, 2 you buy on the last day of the month as well? and you close the lot at the end of the day on the 1st? So you only hold for a day?

 

[laptop1]

Bramble

I've not tested it for a few years and dont have softwear to test it. All test was done by Eyeballing, but over a 2 year period on a recent back test, it came out in profit again, I don't think it has a down year since 1992...Anyone is welcome to test it, you could twist it around add some bells to it maybe add stop to it...

Hoggums

Basically on the last day of the month, you go long the Dow at the close no stop then exit your position, at the close on the 1st day of the new month. However, if the 1st of the month, falls on a weakend, you don’t buy the 1st day of a month must fall on a weekday, thats it.

When I tested this method many years ago, it seem to work best on the 1st of every month. However, it also worked on the first trading day of the month.that could land on the 2nd or 3rd.. But I found the date 1st seem to produce better results for some reason. It even made money from 2001 to 2003 bear market...The method is based only on Long trades remember.

 

[jel31]

Anyone tried this?

I haven't looked at it in any detail but stumbled on this thread and it seems too good to be true.

Just a thought on the "no stop", what about a daily binary bet for Dow finshing up on the 1st of the month? You could probably buy for around 52 and if it happens more often than not, quids in

Surely can't be that easy though...

Just going to check it out

 

[MitchT]

Laptop1... We think alike! (Almost)

I took a spread betting account balance from £400 to £1300 over the period of a few months a couple of years ago by using a very similar system on the FTSE100. The only difference, in my case, was that I would buy on the Monday if the 1st fell on a weekend. Basically I would buy the FTSE 100 on the * first working day * of every month. I used a 20 point stop-loss on all of my trades and only got stopped-out once as far as I remember. It worked brilliantly but when the economy started getting shaky I got nervous and stopped doing it because I couldn't imagine that there would still be so many reliable 'up' days on the 1st of the month.

 

[podval]

There are 2 things which can make the system more profitable.

1. Do not trade if the first trading day of the month is Monday.
2. Go long if the price is above SMA200.

Of course, they reduce a number of trades.

 

[puregold24carat]

Have checked this method out.
I personally would NOT trade this as the risk/reward ratio is very poor and a sure way to lose money in the long term.I have better methods that work .This is one to AVOID.

 

[minime69]

this system goes back to the FTSE when the LIFFE floor was still open.

i used to use this method on the FTSE future, buy on the first trading day of each month, 20 point stop or 20 point profit. apparently lot of hedge funds have to adjust there books on the first of each month hence the apparent FTSE up tick. this does not always work, if for example the FTSE had a rally the day before then it did not work.

its a bit of hit and miss system.

 

[puregold24carat]

Will check it out but still feel risk reward ratio of 1:1 does NOT appeal to me.Ta.

 

[cmp1951]

If you place trade only for 1st of the month, and then only if last day closes down on the day, there seem to be better results.

 

[london_lad]

puregold, what other methods have you got on FTSE100? unless they are ubser secret? care to share?

 

[puregold24carat]

Always willing to share .
Contact me on : [email protected]

 

[gedward3]

this system goes back to the FTSE when the LIFFE floor was still open.

i used to use this method on the FTSE future, buy on the first trading day of each month, 20 point stop or 20 point profit. apparently lot of hedge funds have to adjust there books on the first of each month hence the apparent FTSE up tick. this does not always work, if for example the FTSE had a rally the day before then it did not work.

its a bit of hit and miss system.

Minime,

Could this also be attributed years ago to when people and funds used to Bed and Breakfast shares to avoid the tax implications.

Ged