NFLX Signals (Weekly)
For the 528 week (10.1 year) period from Jul 7 2008 to Aug 17 2018, these signals for Netflix, Inc. (NFLX) traded long and short would have yielded $38,786,358 in profits from a $10,000 initial investment, an annualized return of 126.6%. The long-side profit (buy/sell only, no shorts) for the signals was $7,434,281, an annualized return of 92.5%. If you had bought and held the stock for the same period the profit would have been $790,902 (an annualized return of 54.3%). The trading style was Long & Short, meaning that you would be long or short the security at all times.
For this type of strategy, not every signal is acted upon and signals are often reinforced. If you are long in the security, buy signals can be ignored, for example. Similarly if you are short you can ignore sell signals. For this particular NFLX strategy there were 276 buy signals and 44 sell signals.These led to 27 long trades of which 18 were profitable, and 26 short trades of which 19 were profitable.
This is a weekly strategy; weekly OHLC data is used to derive all signals and there is at most one buy and sell signal and one trade per week. Drawdown (the worst case loss for an single entry and exit into the strategy) was 45% vs. 82% for buy-hold. Using drawdown plus 5% as our risk metric, and annualized return as the reward metric, the reward/risk for the strategy was 2.53 vs. 0.63 for buy-hold, an improvement factor of around 4.0