About this blog

Outperforming the SP500 with Lower Risk

The SPW trading strategy is named after the woodpecker bird, which chips away at wood little by little to make a hole. The SPW strategy does not try to stay in a trend, but instead takes advantage of excessive price fluctuations during it. This is accomplished by buying when sentiment is pessimistic and selling when it becomes optimistic.

This blog is a proof of concept for a trading system based on the Standard & Poor’s 500 Index that aims at determinin the system’s effectiveness. It keeps a log of all trades that can serve as proof of its operation, and will record data to evaluate the performance during the test period.

The blog will be kept alive for the time it takes to demonstrate that the algorithm is reliable and produces consistent results under varied market conditions. In the meantime, it is shared, so there is a public track record of its performance.