Insider buying in a company can signal positive developments. We use insider buying to form a monthly trading strategy.

On the first of every month, get the company with maximum insider buying in the previous month and place BUY order and SELL the same on the last trading day of the month. I backtested this from January 2016 to September 2021 for 69 months, here are the results. Below is the summary and cumulative graph for initial corpus of 2 lakhs.

Corpus 200000
Stop Loss -5%
Net Return With SL 178%
Net Return Without SL 6%
Monthly Average With SL 5148.582954
Monthly Average Without SL 170.9495817
Max Profit 55534.31983
Max Monthly 01-11-2020
Short Term Capital Gains Tax 15%
Tax 83287.83357
Post Tax Net 471964.3903
Post Tax Return 135.98%