Seasonalities

What are seasonalities?

The definition of seasonalities states that seasonal patterns from the past can reproduce in the future. They are repeated every day, every week, every month and every year at the same time or period.

The seasonal cycles tell you the tendency of a particular currency pair, stock indices or commodity to go up or down.

Seasonalities are an statiscal average. You can use it individually or in combination with your technical analysis.

There are seasonal patterns not only on a monthly basis, but on any time level or time period. This seasonality can also occur at certain events, such as elections or central bank meetings. FED Drift.

Examples of seasonalities

In the northern hemisphere, the temperature drops in the winter months and rises in the summer months. This has an impact on the oil, gas and heating oil price. Companies must purchase these commodities before the heating season.

Similarly, a company that sells sporting goods and casual apparel sees sales skyrocket in the summer as demand for its products increases. On the other hand, the company is likely to experience a significant decline in the winter.

How can you profit from seasonalities on the stock market?

For this purpose, seasonal patterns in different markets were examined by us and evaluated with historical data (back-tested).

Backtesting is a key component for the effective development of trading systems. This is achieved by reconstructing trades with historical data that would have occurred in the past, using rules defined by a particular strategy. The result provides statistics to assess the effectiveness of the strategy.

The underlying theory is that any strategy that has worked well in the past is likely to work well in the future, and conversely, any strategy that has worked poorly in the past is likely to work poorly in the future. This article explains which applications are used for backtesting, what kind of data is retrieved, and how it is used.

What is a Multi Asset Study?

The Multi Asset Study is an analysis that deals with the interaction of different investment strategies, such as seasonalities, trend, momentum or value investing. The aim is to take advantage of the diversifying properties of these investment strategies to minimise risk while maximising returns. A multi-asset study can be conducted in a variety of ways, including portfolio optimization, asset allocation, and risk management. It is an important component in asset management and financial planning as it allows investors to diversify their portfolio in the best possible way, thereby minimizing risk while maximizing returns.