Trading the SANTA CLAUS Christmas Rally (Seasonal Trading Strategy)

The Santa Claus rally, also known as the turn of the year effect or Christmas effect, is an end-of-year rally in stocks that has been observed in financial markets for many years. It is typically characterized by a surge in the stock market during the last week of December and the first few days of January.

In this video, we will explore the Santa Claus rally in stocks and gold, examining its historical performance and discussing its potential causes. Using a strategy backtest, we will analyze how the S&P 500 has performed during the end-of-year rally from 1960 to the present day.

Our strategy is simple: we will invest $100,000 in the S&P 500 index at the beginning of 1960 and track its performance through to today, compounding and reinvesting all dividends. We will then plot the resulting equity curve to see how the end-of-year rally has affected the stock market over time.

By examining the data, we hope to gain a better understanding of this phenomenon and provide valuable insights for investors who may be considering taking advantage of the Santa Claus rally in their own trading strategies.
#StockMarket #Investing #Finance #Trading #SantaClausRally #TurnOfTheYearEffect #ChristmasEffect #S&P500 #EquityCurve
#InvestmentStrategy #Backtesting #HistoricalPerformance
#MarketTrends #YearEndRally

You can read more about it here:
https://www.quantifiedstrategies.com/end-of-the-year-santa-claus-rally-strategy/#The_Santa_Claus_rally_in_stocks

TWITTER
https://bit.ly/Twitter_QS

INSTAGRAM
https://bit.ly/Instagram_QS

NEWSLETTER - QUANTIFIED STRATEGIES
30 000+ Traders read our free newsletter about trading strategies.
Sign up: https://bit.ly/substack_QS

RISK DISCLAIMER
Quantified Strategies (SIA Lofjord) is not an investment advisor. The content and information provided are educational and should not be treated as financial advisory services or investment advice. Trading and investment in securities involve substantial risk of loss and is not recommended for anyone that is not a trained trader or investor – it shall be conducted at your own risk. It is recommended that you never risk more than you are willing to lose. Leverage can lead to substantial losses. Any use of leverage, margin, or shorting is at your discretion. Quantified Strategies (SIA Lofjord) is not responsible for any losses that occur as a result of its content and information.
Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, Since the trades have not been executed, the results may have under or overcompensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs, in general, are also subject to the fact that they are designed with the benefit of hindsight. No representations are made that any account will or is likely to achieve profit or losses similar to those shown.

Видео Trading the SANTA CLAUS Christmas Rally (Seasonal Trading Strategy) канала Quantified Strategies