Strategy ADL

This strategy is based on the « ADL » (Accumulation Distribution Line) model.

Usually a constant and steady accumulation of shares of a company by investors is the sign of a likely next up of its stock price.

A the opposite, a constant and regular distribution of shares of a company by investors is the sign of a likely next decrease of its stock price.

Efficieny rate of the strategy ADL on CAC40 companies on

Evolution of the efficiency rate of the strategy ADL

 

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 %.