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Key Market events for Backtesting

  1. Black Monday (1987)
    • Date: October 19, 1987
    • Brief: A global stock market crash that saw the Dow Jones Industrial Average (DJIA) lose about 22% in a single day. Highlights the impact of program trading and market psychology.
  2. Asian Financial Crisis (1997)
    • Start: July 1997
    • Brief: Originating in Thailand with the collapse of the Thai baht, this crisis spread across Asia, impacting currencies, stock markets, and other asset prices. A test of currency risk and contagion effects.
  3. Dot-com Bubble Burst (2000-2002)
    • Peak: March 10, 2000
    • Brief: Following excessive speculation in internet-based companies, the NASDAQ Composite lost 78% of its value as the bubble burst. It underscores the risk of speculative bubbles.
  4. September 11 Attacks (2001)
    • Date: September 11, 2001
    • Brief: Terrorist attacks in the USA causing significant market volatility and uncertainty. This period tests strategies under extreme geopolitical stress.
  5. Global Financial Crisis (2007-2008)
    • Start: 2007
    • Brief: Initiated by the collapse of the subprime mortgage market in the United States and the banking crisis, it led to the Great Recession. It’s key for understanding systemic risk and liquidity crises.
  6. European Debt Crisis (2010-2012)
    • Start: 2010
    • Brief: A multi-year debt crisis in the European Union, mainly impacting Greece, Portugal, and Ireland. It offers insights into sovereign risk and the impact of fiscal policy on markets.
  7. Chinese Stock Market Turbulence (2015)
    • Start: June 2015
    • Brief: A major stock market crash that began in China and affected global markets. This period tests the effects of government intervention and emerging market volatility.
  8. COVID-19 Market Crash (2020)
    • Start: February 2020
    • Brief: Triggered by the COVID-19 pandemic, global markets experienced significant declines. It’s vital for understanding market responses to global health crises.
  9. Oil Price Negative (2020)
    • Date: April 20, 2020
    • Brief: U.S. oil prices went negative for the first time in history due to a steep drop in demand during the COVID-19 pandemic. A unique scenario for testing commodity-related strategies.
  10. GameStop Short Squeeze (2021)
    • Peak: January 2021
    • Brief: Fueled by retail investors and social media, GameStop’s stock price surged, causing significant losses for short sellers. A modern examination of market sentiment and the power of retail investors.

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