Note: Funcharts are interesting charts I have found that offer a potentially unique perspective on a stock. Sometimes I’ll throw something out there that you might find controversial or wrong headed. If that’s the case your 2 cents worth is most welcome.
Abbvie (ABBV) listed on the US market sets up nicely as a Trend Following stock. If you are in Tradingview insert the Supertrend Strategy and change the inputs to a 50 period ATR length with a factor of 2 times ATR trailing stop.
The strategy will buy when the daily closing price closes above the ATR trailing stop and go short when the price closes below the ATR trailing stop (shown in blue and red on the chart).
A look at the performance summary for long trades shows 44% winning trend with a win:loss ratio of 2.22 with a profit of over 109% through the period. Whilst buy and hold was the best strategy overall the drawdown was much lower for the trend following strategy and almost as much money was made. Stock like this that trend nicely, whilst allowing you to manage downside risk can be used with a certain amount of leverage as it follows the age old mantra of letting profits run and cutting losses early.
As with all trend following strategies, a low win rate but high win:loss ratio is to be expected.
Abbvie (ABBV) listed on the US market sets up nicely as a Trend Following stock. If you are in Tradingview insert the Supertrend Strategy and change the inputs to a 50 period ATR length with a factor of 2 times ATR trailing stop.
The strategy will buy when the daily closing price closes above the ATR trailing stop and go short when the price closes below the ATR trailing stop (shown in blue and red on the chart).
A look at the performance summary for long trades shows 44% winning trend with a win:loss ratio of 2.22 with a profit of over 109% through the period. Whilst buy and hold was the best strategy overall the drawdown was much lower for the trend following strategy and almost as much money was made. Stock like this that trend nicely, whilst allowing you to manage downside risk can be used with a certain amount of leverage as it follows the age old mantra of letting profits run and cutting losses early.
As with all trend following strategies, a low win rate but high win:loss ratio is to be expected.