Microsoft (MSFT) Signals Equity

Microsoft (MSFT) Signals-Daily

These Microsoft (MSFT) signals traded as directed would have performed around 3.4 times better than buy-hold with an ROI of 350% for the period 16-Aug-16 to 19-Sep-18

Microsoft (MSFT) Signals

The above trading signals for Microsoft (MSFT) were selected from over a million backtest results for their reward/risk and parameter sensitivity characteristics. Backtests don't always generate reliable signals which can be counted on moving forward but many traders find value in knowing what buy and sell signals would have worked well in the past.

Returns for the Microsoft (MSFT) signals

For the 528 day (2.1 year) period from Aug 16 2016 to Sep 19 2018, these signals for Microsoft (MSFT) traded both long and short would have yielded $34,970 in profits from a $10,000 initial investment, an annualized return of 105.2%. Traded long only (no short selling) the signals would have returned $20,123, an annualized return of 69.4%. 66.3% of time was spent holding stock long. The return would have been $10,335 (an annualized return of 40.4%) if you had bought and held the stock for the same period.

Signals and Trades

Not all signals are acted upon and signals are often reinforced in this type of strategy. If you are long in the security, buy signals are not acted on, for example. Similarly if you are short you must ignore sell signals. There were 375 buy signals and 87 sell signals for this particular MSFT strategy .These led to 61 round trip long trades of which 50 were profitable, and 60 short trades of which 38 were profitable. This is a daily strategy; daily OHLC data is used to derive all signals and there is at most one buy and sell signal and one trade per day.

Drawdown and Reward/Risk

Drawdown (the worst case loss for an single entry and exit into the strategy) was 7% for long-short and 5% for long only. This compares to 9% for buy-hold. The reward/risk for the trading long and short was 9.02 compared to 2.80 for buy-hold, a factor of 3.2 improvement. If traded long only, the reward/risk was 7.18. We use drawdown plus 5% as our risk metric, and annualized return as the reward metric.

The backtests assume a commission per trade of $7.

MSFT Signals Weekly Equity

MSFT (Microsoft) Signals – Weekly

These trading signals for MSFT were selected from 1,220,000 backtest results for their reward/risk and parameter sensitivity characteristics. While backtests don't typically provide reliable signals which can always be counted on moving forward, many swing traders find value in knowing what buy and sell signals would have worked over time.

MSFT Signals Weekly

For the 528 week (10.1 year) period from Jul 7 2008 to Aug 17 2018, these signals for Microsoft Corporation (MSFT) traded as directed would have yielded $396,274 in profits from a $10,000 initial investment, an annualized return of 44.3%. The long-side profit (buy/sell only, no shorts) for the signals was $141,145, an annualized return of 30.8%. If you had bought and held the stock for the same period the profit would have been $43,187 (an annualized return of 18.0%). 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 MSFT strategy there were 364 buy signals and 273 sell signals.These led to 148 long trades of which 107 were profitable, and 147 short trades of which 104 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 27% vs. 44% 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 1.40 vs. 0.36 for buy-hold, an improvement factor of around 3.8