Can I Run a Weekly System Daily?

Can I Run a Weekly System Daily?

This stock trading question comes a reader who asks:

“I run the RealTest Turnkey Code for Weekend Trend Trader each day so that I can get into the trades as they pop up and not once a week. Is this OK or is there a better way to do it?”

As the Weekend Trend Trader is a weekly system, signals should only be generated after the close on Friday and before the start of trading on Monday. The reason being is that the strategy requires the Friday close to make its calculations.

If you run the strategy on a Wednesday as an example, the close of Friday may invalidate the signal and you may initiate a position that is not correct, at least not correct according to the strategy rules.

If you wanted to run the strategy daily, then we highly recommend running backtest simulations to ensure you’re happy with the outcome. If so, then by all means run the strategy daily. Alternatively you can run another daily system of a different type along side the Weekend Trend Trader to add to the diversification such as a mean reversion system.

Have a question for the team? Drop us an email here.