divergence software, inc.
Development & Consulting Services
Product Detail
QQQ Mean Reversion System
TradingView indicators will be activated for your TradingView account and no installation is required. eSignal indicators will be delivered to you via email in zip files. Some of the more complex indicators have installer programs. In most cases we will require your eSignal username so that we can set up the entitlement for the indicator(s) you have purchased.
The majority of our indicators are licensed for a one-time fee (i.e., non-recurring). However, we do have some subscription-based products, including marketDirection Monitor, Harmonic Pattern Collection, and S/R Analyst Pro.
Description
This is a mean reversion system developed specifically for the QQQ ETF, and is designed to run in the Daily interval. It is a Long-Only system.
The goal was to develop a system that could beat the buy-and-hold returns with lower drawdowns and less time in the market. This system does that quite well. Assuming the default settings ($100K initial capital, 25% risk) it achieved a 79% win rate, a 3.10 profit factor, around 30% annual return, around 20% max drawdown, and a time-in-market of less than 12% when backtested from 1999 to present.
On average the system generates 6 or 7 trades per year (average trade lasts 4 days), and all entries and scheduled exits are at market open the session after the signal is generated. The stop is fairly large and is intended only as a fail-safe in the event of a market event.
While developed specifically for the QQQ, it can also be used with technology stocks and other tech-based funds.
Specifications
- Product ID: SYS12
- Study only, no source code provided
- Requires eSignal 12.x or newer