Interesting potential trading strategy

Jun 6, 2018

I found this indicator today for the Accumulation/Distribution line which color codes the ADL according to the difference in the lines moving average within a period(I think it's 9 and 15 day MA but I would have to check again). I wanted to see what the results would be if you traded each time the color coding (i.e. MA differential) swung before crossing the 0 line. You can see each point marked with a vertical line - green for potential "buy" points and red for potential "sell" points. Then you can see I marked with the gray trendlines where you would have bought and sold, to get the rough net gain/loss. I then averaged these across the period in question -- and came out with a net 57.85% gain! I haven't done any more extensive back testing or monitoring past this, but it looks like it could have some potential. I will have to do some more in-depth analysis and see how durable this strat is. Just posting now for your thoughts and consideration!