"Buy Low Sell High" is Dead
StatsEdgeTrading
Most traders cling to the old saying “buy low, sell high.” But what if the data says otherwise?
In this week’s quick breakdown, I walk through one of the most basic – yet powerful – backtests I’ve ever run: buying stocks that break out to new all-time highs after a year of consolidation.
No stops. No profit targets. No finesse. Just: Buy new highs → Hold for a year.
🟩 The result? Steady, positive returns. Not the prettiest equity curve, but it works.
Then I flipped the script: What happens if you buy stocks making new all-time lows? That backtest tanked – and more than once, went completely bankrupt.
📌 Key takeaways:
“Buy low, sell high” sounds smart, but “buy high, sell higher” is what the numbers back up.
Simple ideas are great, but test everything. Even when smart people say it. Especially when they do.
If you want someone to do that testing for you, that’s exactly what we do at www.statsedgetrading.com
