The document discusses a strategy for beating the market with less risk by avoiding the worst performing days. It notes that the best days often follow the worst days, which tend to occur during periods of high volatility like bear markets. The strategy presented is to own the S&P 500 only when it is above its 200-day moving average, and own bonds instead (AGG) when it is below. Backtesting shows this strategy would have captured 47 of the 50 best and worst days since 1997 simply by following this rule. The strategy is presented as having fewer trades than actively trading and avoiding human errors like missing trades or trading the wrong size.

1. Beat
the Market
with
LESS RISK
@fxflow
Trade Ideas
Charts
Research

2. Based upon article by
Michael Batnick
Miss the Worst Days, Miss the Best Days
https://theirrelevantinvestor.com/2019/02/08/miss-the-worst-days-miss-the-best-days/

5. Since 1990:
The best days follow the worst days
The worst days = high volatility
High Vol ~ Bear Markets

6. What Happens
If you miss
25 Best
AND
25 Worst Days?

8. Do we have a
Crystal
Ball?

9. Yes
we do

10. Since 1997
47/50
Best and Worst days
=
S&P < 200 SMA

11. RULES
If S&P > 200 SMA own it
If < 200 SMA buy bonds
(AGG)

15. There is
Only One
Problem

16. 160
Trades

18. It Won’t Trade the Wrong Size
It Won’t Forget a Stop
It Won’t Make Buy Instead of a Sell
It Will Not Miss a
Trade

19. There is no flow
like
#bkflow

24. Have
FUN:)
In What Other Business
Do We Look Forward To
Mondays?