André Stagge trading strategies

Description

This strategies pack contains eight trading strategies. All strategies are used by experienced fund manager André Stagge. This experienced investor worked for a decade as a senior portfolio manager in a major German asset management company. André Stagge was responsible for 2,5 billion in clients assets. During his stewardship he made more than 500 million Euro in profit (after costs) for his clients.

The strategies are all swing trading strategies. Most often positions are kept one night or a few days. In a rare case positions are kept several weeks.

Buying this package allows the user to:

1. Back-test all the strategies and check the performances provided by André Stagge.
2. Apply the strategies to other financial instruments.
3. Expand or modify the strategies (for example by adding stop loss orders).

Tip: if you are interested in André Stagge’s trading strategies and you have a WH SelfInvest account, you should register for the SignalRadar Mail & Click service. The Mail & Click service sends e-mails containing trading signals based on André Stagge’s strategies. One click suffices to place an open and close order.

Suitable for	: Market indices (DAX, S&P 500) : Forex (EUR/USD) : Commodities (silver, gold, bund)
Instruments	: Futures, CFD and forex
Trading type	: Swing trading
Using NanoTrader Full	: Manual

The pack is available in NanoTrader Full. The pack contains:

• Eight ready-to-use trading strategies: Friday silver surfer, EUR-USD tax day, Triple witching, Combination of the Halloween and month’s end effects, Labor day long, Long before the Fed, Interest rate hamster and Short superstar.
• Free participation in WHS webinars on this topic.
• Unlimited telephone access to the support desk.

Buy a monthly subscription for 76 Euro per month or a one-time payment of 853 Euro. Prices are excluding 17% VAT.

Click here to buy the eight André Stagge trading strategies pack in the store.

The eight strategies in detail

The eight strategies:

• Are easy to understand and simple to implement.
• Trade very liquid instruments.
• Trade futures but can be used for CFD-Forex.
• Seem to have a strong consistent track record.
• Can be combined.

André Stagge does not place stop loss orders. The strategies in the pack have been expanded with an emergency stop, just in case.  In addition the fund manager does not specify the exact hours when positions are opened and closed. In order to automate strategies open and close times have been added to all strategies in the pack. As usual the user can change these times in the designer dialog.

1. Triple witching

Four times a year the options on individual stocks, the options on market indices and the futures on market indices all expire on the same day. This day is called triple witching day. The strategy consists of going long on the DAX or the S&P 500 a few days before the triple witching day and closing the position at the end of the day. These are the results on the DAX market index since 01.01.2003 provided by Andre Stagge:

Some of the strong points of this strategy are its simplicity, the fact that several market indices can be used and positive results are consistent, even during the difficult period of 2007-2008.

2. Combination of the Halloween and month’s end effects

Both these effects are well-documented in financial literature. The best and most stable result, however, can be obtained by combining both effects in one strategy. This combination strategy therefore trades only nine times a year. These are the results for the S&P 500 provided by André Stagge:

A back-test of this strategy over the last 10 years using the NanoTrader:

Some of the strong points of this strategy are its stability over the last 100 years, the consensus in financial literature on the two market phenomena this strategy exploits and the excellent performance on stock market indices.

3. Labor day long

The Labor Day holiday in the U.S. is a major event. Money accumulated or not spent during the holiday flows into the market.  Major fund managers anticipate this inflow and start buying the days before. This strategy consists of going with the flow on this market phenomenon i.e. opening a position a few days before the holiday and closing it before the holiday’s end. These are the results for the S&P 500 index provided by André Stagge:

Some of the strong points of this strategy are the fact that the average profit per trade (50 basis points) is significantly higher than the average loss per trade (22 basis points)  and the fact that the strategy works in spite of the traditional seasonal weakness of the markets in August and September. The strategy is not efficient in bear markets.

4. Long before the FED

André Stagge states “this is one of the best strategies I know”. FED stands, of course, for the Federal Reserve Bank i.e. the U.S. central bank. Piloting to the FED is the FOMC, the Federal Open Market Committee. The FOMC meets eight times a year to decide on the country’s interest rate policy. Research indicates that before the FOMC announces its interest rate decisions, the market creeps up. These are the results for the S&P 500 provided by André Stagge:

An investor who is only long on the eight days before the FOMC meeting, makes, according to scientific studies, 80% of the market’s yearly return, with significantly less risk. It appears not to be relevant to the strategy’s results what the FOMC finally decides. The strategy also works in markets going down.

5. Interest rate hamster

A combination of three reasons results in a strategy which holds the bund future over the weekend. These are the results for the Bund provided by André Stagge:

A back-test of the same strategy over the last 10 years using the NanoTrader:

The strategy can be applied to other bonds. It would appear that the second half of the year consistently results in a slightly better performance.

6. EUR/USD tax day

US companies can significantly reduce their annual tax bill if they convert their cash from USD into another currency before the end of the calendar year. The companies start converting in December. In January the currencies are converted back  into USD. The strategy exploits this phenomenon by being short USD before 31 December and being long USD after 31 December. These are the results for the EUR/USD provided by André Stagge:

The strategy can be used on many forex pairs on the condition they include the USD. On the USD index the strategy has been equally successful since 1986. The draw downs appear limited.

7. Friday silver surfer

The Friday Silver Surfer strategy is nearly identical to the Friday Gold Rush strategy. The latter strategy is available for free in the NanoTrader trading platform. Read the detailed description. These are the results for silver futures provided by André Stagge:

The strategy has a variable track record. However, after 2003 performance was strong, particularly in uncertain market conditions. Curiously for a long-only strategy the Friday Silver Surfer also shows good results in a bearish silver market.

8. Short superstar

André Stagge designed this strategy to counter-balance his many long-only trading strategies. He wanted a strategy which could short sell the DAX in a consistently profitable way, even in a bullish market. Like most other strategies in this package, the Short Superstar strategy exploits repetitive market behaviour often displayed by the large market participants. These are the results for the DAX market index provided by André Stagge:

Signals are very rare. Between 1999 and the end of 2018, the strategy gave a total of 116 signals, 83 resulted in profitable trades. The strategy appears to deliver positive returns in both bullish and bearish markets.

Click here to buy the the eight André Stagge trading strategies pack in the store.