Nasdaq Model

The Nasdaq model is an intermediate LONG-SHORT model which uses the Nasdaq’s breadth indicators to generate Buy and Sell Signals. I have backtested two different approaches of using the model: 1) Long Only and 2) Long-Short. The following analysis presents the data for both of these approaches.


The chart above shows the Nasdaq Index and the Model signals. I have backtested the model since January 01, 2017.


The Nasdaq model can be used to take only long trades. The results of this approach are shown in the summary below. The strategy yielded an impressive 138% return since 2017. See detailed results below.

The Back-Test Results: Long Only Strategy

The Long-only Strategy Equity Curve


Using the strategy to enter both long and short trades is also profitable, although its win rate is somewhat lower and max drawdown somehow deeper. This approach has generated 101% return since 2017.

The Back-Test Results: Long-Short Strategy

The Long-Short Strategy Equity Curve