Strategy AROON

This strategy is based on the Aroon model.

This indicator is composed of 2 curves : the “Aroon UP” and the “Aroon DOWN”.

  • A bullish signal is detected if the Aroon UP crosses the Aroon DOWN upward,
  • A bearish signal is detected if the Aroon DOWN crosses the Aroon UP upward.

Efficieny rate of the strategy AROON on CAC40 companies on

Evolution of the efficiency rate of the strategy AROON

 

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 %.