Strategy 15_XLV -- Healthcare mean reversion
A mean reversion strategy on XLV with CAGR 10%, MaxDD -20%, 59% accuracy, profit factor 3.44, and Sharpe 0.88.
Disclaimer: the following post is an organized representation of my research and project notes. It doesn’t represent any type of advice, financial or otherwise. Its purpose is to be informative and educational. Backtest results are based on historical data, not real-time data. There is no guarantee that these hypothetical results will continue in the future. Day trading is extremely risky, and I do not suggest running any of these strategies live.
A subscriber reached out to me and asked me if I had thought about creating a long strategy for healthcare sector ETFs. I had not, so I decided to take a look at it. The following strategy is what I came up with.
Strategy 14 Report
Strategy 15 Logic
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