Skip to content

PAYC Monthly Seasonal Trading Strategy 3318%


Investors are constantly seeking ways to maximize their returns and minimize risks. Seasonality in the stock market presents opportunities for those equipped with the right information and strategies. Today, we delve into a compelling seasonal trading strategy applied to PAYC, revealing insights that could transform your investment approach.

Company Overview

PAYC, known for its cloud-based human capital management software solutions, has been a notable player in providing innovative products. Their comprehensive suite includes payroll processing, talent acquisition, and employee time and labor management, catering to a broad range of businesses seeking to optimize their human resources.

Strategy Overview

Our focus lies on a long and short position monthly seasonality trading strategy initiated between April 2014 and December 2022, with an active exposure time of approximately 60.6%. This strategy involves taking long positions in February, April, June, July, August, and October, and a short position in December.


Key Performance Indicators

The trading strategy yielded a final equity of $341,898.45 from an initial capital of $10,000. This remarkable performance surpassed the buy-and-hold return of 1921.56%, with an annual return of 50.00% versus 40.99% for the latter.


StrategyBuy and Hold
Start Date2014-04-152014-04-15
End Date2022-12-302022-12-30
Duration3181 days3181 days
Exposure Time [%]60.5999.91
Equity Final [$]341898.45199395.12
Equity Peak [$]351456.95353698.56
Return [%]3318.981893.95
Return (Ann.) [%]50.041.0
Volatility (Ann.) [%]50.6369.21
Sharpe Ratio0.990.59
Sortino Ratio2.441.32
Calmar Ratio1.580.77
Max. Drawdown [%]-31.6-53.01
Avg. Drawdown [%]-4.71-6.07
Max. Drawdown Duration252 days423 days
Avg. Drawdown Duration24 days25 days
# Trades431
Win Rate [%]83.72100.0
Best Trade [%]48.331896.6
Worst Trade [%]-19.441896.6
Avg. Trade [%]8.571896.6
Max. Trade Duration95 days3179 days
Avg. Trade Duration44 days3179 days
Profit Factor7.52nan
Expectancy [%]9.411896.6

Risk Management

Despite its impressive returns, the strategy maintained a consistent risk profile with an annual volatility of 50.63% and a Sharpe Ratio of 0.9876. The maximum drawdown observed was -31.60%, with an average drawdown of -4.70%.


Trade Analysis

Over the span of 3181 days, the strategy executed 43 trades with a high win rate of 83.72%. The best trade saw a gain of 48.33%, while the worst encountered a loss of -19.44%. The average trade yielded an 8.57% return, with a profit factor of 7.52.



The backtesting results demonstrate the efficacy of the monthly seasonality trading strategy on PAYC. For retail investors, this strategy not only offers a roadmap to potentially higher returns but also showcases the importance of a systematic approach to capitalizing on market seasonality.