Strategy KST

This strategy is based on the « KST » model developed by Martin Pring.

The setting chosen for this strategy is

  • "short term" for daily charts with following values: 10,15,20,30,10,10,10,15 for the KST and 9 for the trigger line.
  • "medium term" for weekly charts with following values: 10,13,15,20,10,13,15,20 for the KST and 9 for the trigger line.

A bullish signal is detected if

  • The KST is negative
  • The KST crosses its trigger line upward

A bearish signal is detected if

  • Le KST is positive
  • The KST crosses its trigger line downward

Efficieny rate of the strategy KST on CAC40 companies on

Evolution of the efficiency rate of the strategy KST

 

Methodology applied :

The methodology applied to calculate the efficiency of a strategy is as follows:

  • Bullish and bearish signals are calculated every evening when the market is closed.
  • The reference price corresponds to the opening price following the detection of the signal.
  • The gain or the loss is calculated over a period of 40 days following the detection of the signal by taking the highest closing price recorded over the period.
  • This period is reduced in case of detection of an inverse signal.
  • The efficiency rate is calculated by dividing the sum of gains and losses on the sum by the sum of the gains.

This efficency is displayed in %.