Systems 19 and 20 are Contrarian Swing Trading Strategies, using a psychology-based approach to the swing trading of two opposite index tracker ETFs. They measure waves of investor sentiment, and anticipate to upcoming trend changes therein. A timely tactical repositioning between these two ETFs is crucial for their success. They adapt themselves to a variety of market conditions and detect tendencies of fear and euphoria. They have a potential for great returns, but come with a high level of risk — periods of big advances do not come without the inevitable ugly drawbacks every now and then. Therefore a long investment horizon is a necessity.
System 19System 20
Return/risk profileHighVery high
Sharpe ratio1.49681.6839
Compound Annual Growth Rate (1/2015 – 8/2019)64.16%61.00%
Average number of trades per month (8/2019)1.031.36