Discussing the article: "Reimagining Classic Strategies (Part IV): SP500 and US Treasury Notes"

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Check out the new article: Reimagining Classic Strategies (Part IV): SP500 and US Treasury Notes.

In this series of articles, we analyze classical trading strategies using modern algorithms to determine whether we can improve the strategy using AI. In today's article, we revisit a classical approach for trading the SP500 using the relationship it has with US Treasury Notes.

In our previous article, we discussed a potential S&P 500 trading strategy that would rely on us using a selection of stocks that held high weights inside the index. In today's article, we're going to look at an alternative approach of trading the S&P 500 using the Yield of Treasury Notes. For many years now, whenever investors felt risk-adverse, they would normally withdraw their money out of risky investments, such as stocks, and rather save their money in safer investments, such as bonds and treasury notes. Conversely, when investors gained confidence in the markets, they would tend to take their money out of safe investments, such as bonds, and rather invest their money in the stock market.

Fundamental analysts have realized over the years that this correlation between the movements and the S&P 500, and the movement in Treasury Yields seems to be opposing each other. It appears to be a negative correlation, as to say that as investors invested more in stocks, they tend to invest, less in bonds and treasury notes.

Author: Gamuchirai Zororo Ndawana

[Maxim Kuznetsov]

the last (lowest) screenshot, does it have anything to do with the article and the strategies mentioned ?

there is also a timeframe M1 and targets in several points :-)