I cloned an Stochastic Crossover algorithm and fine tuned it with a basket of four 2x ETFs.
The main intention was to
- buy at absolute lows (whenever there is a crossover under 10)
- sell whenever there is a crossover over 80 OR the position has a 10% loss
So far the strategy looks great. Very few trades with low drawdown ( < 10% ) but still matches or beats the S&P.
Since there a long periods with no trades, I was thinking that we can hold some other ETF's (like SPLV,SHY or SPY itself) in the interim. Basically buy SPY as long as the 2x ETF stoch is over 25 and sell it whenever the 2x ETF stoch is less than 25 so that we prepare to buy the 2x ETF if it meets the conditions above.
Can someone collaborate & help program those conditions and see if it increases the returns and still keeps the drawdowns low.