The Failed Bounce Trading Strategy

Welcome to our video about the Failed Bounce trading strategy. This strategy was published on our website eight years ago and has proven to be a successful trading approach. Despite the unusual name, the strategy has produced solid results, which we will explain in this video.

The Failed Bounce strategy involves buying on short-term pullbacks and selling on strength. It has worked well on stocks since the late 1980s, returning an average of 0.86% per trade. Out of the 204 trades, 77% turned out to be winners, resulting in a net profit of 450%. Despite being invested only 8.5% of the time, the annual return is 5.8%. This equals a risk-adjusted return of 67%, which is impressive.

In the video, we show examples of three trades - two winners and one loser - and explain the strategy's trading rules. We also discuss the importance of the IBS indicator, which we believe is the most underrated indicator in trading.

The strategy works well on stocks but not on commodities or bonds. We have tested the strategy on other ETFs and futures, and it has been successful. The equity curve on the left shows Pepsi-Cola since 1976, and the curve on the right tracks consumer staples. The best results have been achieved with QQQ, which has an average of 1% per trade.

If you want to know the code we used for this strategy, you can find it on our website, where we have hundreds of strategies for all asset classes. All of our strategies are coded and backtested.

In conclusion, the Failed Bounce strategy is a successful trading approach that has produced impressive results. We hope you found this video helpful and informative. Don't forget to subscribe to our channel for more trading insights and updates. Good luck trading!

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You can read more about it here:
https://www.quantifiedstrategies.com/failed-bounce-trading-strategy
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