In the last video we were analyzing DMF's performance against PluralSight (NASDAQ:PS) from 7/21-7/31/2019. Near the end of the video, I noticed that the study period ended with an open short position and I thought it'd be fun to do a quick peek at how it would have performed.
DMF issued a short signal just before the end of the trading session on 7/31 which led to a substantial return. In fact, that one trade exceeded the profit of the entire study period in the last video! But of course an individual call is not a great representation of the strategy, so I expanded the time range to show how it would have played out with a broader view of price movement patterns on either side of that two-day study.
Directional Momentum Flux Strategy