Trading Every Other Trading Day

Something odd that I found:

Test 1:

  • Buy SPY at close every other trading day
  • Sell the next day at close
  • 1/29/1993 – 3/25/2013

1-29-1993 - 3-25-2013 Trading Every Other Day

The 1990′s bull market, and the 2003-2007 market cycle are almost completely missing from the equity curve.

Test 2:

  • Buy SPY at close every other trading day
  • Sell the next day at close
  • 2/1/1993 – 3/25/2013

2-1-1993 - 3-25-2013 Trading Every Other Day

The popping of the tech bubble and the bull market since 2009 are almost completely missing from the equity curve.

Conclusion:

It’s incredibly strange how trading every other trading day can wipe out the gains/losses of any one cycle (1993-2003, 2003-2007, 2007-2013). What does this mean? Absolutely no idea.

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