Best Day to buy Bovespa – Part 2

If you bought Bovespa on Thursday and sold on Friday every week since 2003, you would be rich (if you compounded). We know this. If one was to follow such a strategy, in real-time, would it make money?

In the following strategy an investor would buy at the Close of the “optimal” day that performed best in the 5 past years. She would buy on this day (sell on the next close) for 6 months. At the end of 6 months she would re-optimize, find the “optimal” day of the past 5 years from the current date and follow it for another 6 months. So here is a walk-forward back-test that shows how she would do.

Results are NOT compounded (hence the huge difference).
Initial Capital:   $100,000 – Profit:  $127,438.7




Begin
End No. Net Profit Net % Profit day of week Profit $$
34820 34826 1 3809.68 3.81 1
34826 35186 1 9849.84 9.85 4 13659.52
35186 35192 1 15842.02 15.84 4 29501.54
35192 35551 1 6754.01 6.75 4 36255.55
35551 35557 1 12394.78 12.39 4 48650.33
35557 35916 1 -19902.37 -19.9 4 28747.96
35916 35922 1 10016.43 10.02 1 38764.39
35922 36281 1 22435.88 22.44 1 61200.27
36281 36287 1 -16342.55 -16.34 1 44857.72
36287 36647 1 15916.31 15.92 4 60774.03
36647 36653 1 4610.77 4.61 4 65384.8
36653 37012 1 7781.22 7.78 4 73166.02
37012 37018 1 -10523.76 -10.52 4 62642.26
37018 37377 1 -12518.35 -12.52 1 50123.91
37377 37383 1 -3076.38 -3.08 4 47047.53
37383 37742 1 4480.75 4.48 4 51528.28
37742 37748 1 9594.63 9.59 4 61122.91
37748 38108 1 3838.22 3.84 4 64961.13
38108 38114 1 21109.48 21.11 4 86070.61
38114 38473 1 8833.46 8.83 4 94904.07
38473 38479 1 3687.74 3.69 4 98591.81
38479 38838 1 8690.9 8.69 4 107282.71
38838 38844 1 8881.05 8.88 4 116163.76
38844 39203 1 -4282.91 -4.28 4 111880.85
39203 39209 1 12311.72 12.31 4 124192.57
39209 39569 1 -767.54 -0.77 4 123425.03
39569 39575 1 -2413.08 -2.41 4 121011.95
39575 39934 1 -9401.48 -9.4 4 111610.47
39934 39940 1 14681.36 14.68 4 126291.83
39940 40299 1 3449.71 3.45 4 129741.54
40299 40305 1 -3704.01 -3.7 4 126037.53
40305 40664 1 1401.17 1.4 4 127438.7

Bovespa- Best day to Buy Brazil

Best Day to Buy Brazil Index :Thursday
Worst Day to Buy Brazil Index :Friday

1993-2011 –  Buy on Close of Day. Sell on Close next day.
Commissions =Slippage=0.

Buying On Thursday  Sell next Day. $1,000 growth.

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Buying on Friday. Sell next Day $ 10,000  growth.

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Note to myself:
Best EOM buy Days: Monday or Tuesday.