Everyone knows how to buy shares for long-term holding when the price of the 52-week high is exceeded.. Any American broker has a similar stock screen and is one of the most popular with long-term investors.. That is, it means that if the stock price makes new peaks, means the position of the company is good and the price of its shares, probably, продолжит рост.
But there are different approaches to the moment of purchasing shares.. The easiest is to buy the stock at the next day's open after the price has surpassed the new 52-week high.. But some people prefer to wait for a small correction to buy shares., explaining this by the fact that after reaching a new high, the price should `` rest" and at least slightly adjust. Here is an example of two approaches, in the first case, we buy on corrections, in the second case, immediately after the new high:
The disadvantage of buying on a correction is that there may be no correction immediately after a new high., and the price will fly up. After that, the correction will happen anyway., but the price will already be significantly higher than if the shares were bought immediately after the new high.
The disadvantage of buying immediately after a new high is that if a correction follows, then we will lose the opportunity to purchase shares at a much more favorable price.
Let's see what would have happened if they had started trading using this method ten years ago., for example, shares from the Nazdak-100 index in today's composition. Since shares 100, then for each deal we will spend 1% от общей суммы, so as not to miss a single deal. We get such results (on the left we buy on correction, on the right immediately after the high):
Slightly different. A slightly better option if bought immediately after the new high, not expecting a correction. But, quite possible, that it's just within the margin of error, так как результат, practically, одинаков.
Yes, the correction was determined, как результат условия RSI(10) < 50. Let's see what happens if we expect a deeper correction, for example, RSI(10) < 40
It can be seen that the option to buy on the correction has slightly deteriorated. Let's see what happens if you buy on an even deeper correction., for example, RSI(10) < 30
Main odds — шарп, recovery and profit factors worsened even more when buying on corrections.
Проверил еще на других акциях из индексов SP и Russell — everything as agreed — the results in all cases differ slightly, почти одинаковы, but in favor of the purchase method immediately after the new high, not expecting a correction.
