SP500 Index Combo Strategy

This robust trading system integrates a sophisticated combination of strategies, enabling it to adapt and perform well across various market conditions.

This trading strategy was extensively backtested from the inception of SPY (S&P 500 Index ETF) until today (1993–2023). The backtest performance demonstrated outstanding results in terms of profitability, risk control, and an acceptable drawdown. To further validate the strategy, it was forward-tested in a live account for one year (June 1, 2023 – May 31, 2024), yielding stable and profitable performance.

The strategy is entirely mechanical—entry and exit orders are dictated by the algorithm. Traders can easily follow the signals generated by the strategy manually or in autotrading mode via Collective2. The performance results are shown below.

You can view live performance statistics or trade it live on Collective2

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The strategy issues buy or sell orders one minute before the market close. In autotrading mode, the algorithm executes these orders instantly.

In manual trading mode, a trader submits market orders before the next trading day’s open to ensure buy or sell orders execute at the market open.

Live trading was conducted in a live Interactive Brokers account using autotrading mode. The strategy algorithm operates 24/7 on the dedicated MultiCharts platform.