Crash Reversal

Buys by the recipe we back-tested for the reversal after a crash. Four stages have to occur in order: a death cross, meaning the 10-day line falls below the 20-day line; then a drop of at least 20 percent from the close on the cross day; then capitulation, meaning at least one daily close 15 percent or more below the stock's own 20-day line; and finally the first daily close back above the 5-day line — that is the buy day. If the price recovers above its 20-day line before the 20 percent drop is reached, the case does not count. The stock also has to be tradable: above 1 dollar and at least 1 million dollars of median daily turnover. Only shares our own deep-dive analysis rates green are bought — yellow or no analysis at all is not enough. The check and any new purchase happen every trading day; a position is sold after 17 calendar days, which are the twelve trading days the back-test used as the longest hold. The recipe's second exit — the first close 11 percent or more above the entry price — is not reproduced by this portfolio, because it only checks once a day and has no sell threshold; that remains a rule for your own account. A stop-loss is deliberately absent: in the back-test all 50 tested distances made the result worse. If the list holds no green-rated share, the portfolio stays in cash.

This portfolio buys shares.