Tag Archives: buy and hold

Performance Of Timing Strategies Since Financial Crisis Bottom

Equity indexes have risen for eight years after the bottom of the financial crisis on March 6, 2009, without a bear market. Due to this it has been difficult for market timers to beat buy and hold returns. In this … Continue reading

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Higher Market Timing Returns Than Buy and Hold Do Not Always Prove Skill

Comparing returns of market timing strategies to buy and hold does not always prove skill because the performance of random trading depends on the path prices follow. I offer two examples from 2013 and 2015 and the SPY ETF.

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Random Trading Versus Trading Randomly

Suppose a trader has purposely used a random system to trade SPY since its inception. What was the probability to make annually more than the buy and hold return? Or suppose a trader has worked hard to develop a trading system that generated a positive … Continue reading

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Who Needs the Trading Day? Part Two

I already demonstrated in another article the flaws in the Bespoke study about buying SPY at the close and selling it on the next open. Basically, that study did not account for commissions and this effect alone completely changed the picture … Continue reading

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Who Needs the Trading Day? I do

A study last month in the Bespoke blog concluded that the simple strategy of buying on the close and selling on the open of next day would have significantly outperformed buy and hold since the launch of SPY ETF. The Bespoke results were published in … Continue reading

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