Seasonality Service "Conservative" Strategy

Below we outline a strategy that involves a minimum of buying and selling, taking advantage of the broadest seasonal trends we've identified.

The strategy is based on trends derived from data going back to 1993.  As we've pointed out before, some of our best test results have been gotten by mirroring only the best indicators from just one year ago, not those compiled over several years, so we won't claim this is the "optimal" seasonal strategy.  Time will tell.

The strategy is this:  buy the cheapest 4% of stocks at the beginning of January and hold until April 15th.  At that point, we buy the 4% of stocks with greatest losses over the last 12 months and hold until the end of May.  From there, we buy the 4% of stocks with the greatest gains over the last 12 months and hold until the end of September.  For October, we buy the 10% of stocks with greatest losses in September and hold for the month.  For November, we buy the 4% of stocks with the lowest "mov_ave100" and hold for the month.  For December, we buy the 10% of stocks that trade the highest over their most prominent resistance level ("resist1") and sell just before the last day of December.

We'll reserve the right to alter the above strategy as long as it's not done retrospectively.  The test begins in October of 2003.

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