The rules of this stock trading system can be found in an e-book from The Chartist. By generating signals and managing trades only once per week, the strategy is designed for active trading with low involvement.

This is a trend-based trading system that identifies opportunities based on the weekly trend of the S&P 500 index. If the S&P 500 is trending up then we can look for entries on the individual stocks that make up the S&P 500 Index. If the S&P 500 is trending down, then we tighten our risk management on any current positions. The strategy protects against large capital drawdowns by tightening risk limits and not entering new positions when the general market is in a downtrend.

The weekly trend trader generates entry signals on individual stocks based on their weekly trend and one additional trend filter. This trading system only uses stocks in the S&P 500 as the universe of potential stocks to trade.

Click on the tabs in the visualization above:
Market Trend: This tab identifies the trend of the S&P 500 by using the weekly close data of the SPY instrument and comparing it to the Simple Moving Average.
Entries: This tab identifies potential entries for the week according to the system rules. If the trend of the S&P is down, there will not be any entries. This page is free to all users.

You can also click on any of the links in the sidebar to retrieve the historical data that the weekly trend trader system generated on that day.

We use Robinhood as the broker for retrieving data to generate entry signals, and investing in our personal account. You can click on our referral link here to get a free share of stock when signing up with robinhood.

The entire automation of the stock trading rules is written in python. Python is a popular programming language that has become widespread in data science communities for its wide availability of open source software packages. The visualization above leverages the bokeh python package.