This strategy, used by fund manager Andre Stagge, is simple: Buy gold every Thursday evening and keep the position for 24 hours. On Friday evening, the position is sold. This strategy is based on the fact that firms in the jewelry industry tend to buy their raw material on Friday for delivery during the weekend or Monday morning. The strategy is backtested on GLD (the SPDR Gold Shares ETF) with full capital investment.
Backtesting Results Disclaimer
Past hypothetical backtest results are neither an indicator nor a guarantee of future returns. Actual results may vary from the analysis. Hypothetical performance results have many inherent limitations and cannot fully account for market factors such as bid-ask spread, slippage, and commission costs. There are numerous other factors related to the markets, which cannot be fully accounted for in the backtesting algorithm, but all of which can adversely affect actual trading results.
