Today, we present a mean reversion strategy with a seasonal filter. Mean reversion assumes that prices often stretch too far in one direction and eventually snap back toward a more “normal” level. But there is a problem. A dip-buying strategy…
Today, we look at a pullback strategy for the S&P 500. Pullbacks are among the most common price patterns in the stock market. Instead of chasing a stock after it has already moved sharply, a pullback strategy waits for the…
Earnings seasons, the quarterly periods when companies release financial results, are known for sparking market volatility. Occurring in January, April, July, and October, these seasons are closely watched by investors aiming to capitalize on price movements. But can these periods…
Today, we are backtesting a simple stock market rotation strategy. Over months, the difference between U.S. stocks, developed international stocks, and emerging markets can be substantial. Sometimes the S&P 500 dominates. At other times, international markets take the lead. And…
Today, we look at a momentum strategy for stocks, bonds, and gold. Instead of trying to predict the next market move, this strategy follows what the market is already telling us. The Momentum Strategy for Stocks, Bonds, and Gold ranks…
Many traders secretly feel embarrassed about trading small size. They believe small positions are for beginners. They think they need to trade bigger to be taken seriously, to make meaningful money, or to prove they have confidence. But this mindset…
One of the most persistent stock market tendencies has been the tue turn-of-the-month effect. The idea is straightforward: stock returns have historically tended to cluster around the final trading days of the month and the first few trading days of…
Many traders spend years obsessing over mindset and risk management. While these are important, they are often used as a distraction from a harsher reality: If your strategy lacks a statistical edge (positive expectancy), you probably won’t make money regardless…
Today, we look at what the eighth wonder of trading is – compounding returns (the eighth wonder presumably said by Albert Einstein). Most traders focus on entries, exits, win rates, and indicators. But sometimes the biggest difference in long-term returns…
Today, we look at the Bullish Harami – a small candle with big reversal potential. The bullish harami is one of those quieter signals: a two-candle pattern that suggests selling pressure may be weakening and buyers could be preparing to…
I have been day trading since 2001. And I can assure you that successful day trading is mostly not what it looks like. When people first hear “day trading,” they often think about fast charts, quick decisions, constant action, and…
Today, we look at what we regard as the best reversal strategy. For decades, markets have shown a surprisingly persistent tendency to rebound early in the week after a rough start. It is simple and easy to backtest (and to…
Today, we show you a mean reversion strategy for Semiconductors. Why semis? Semiconductor stocks are among the most exciting, and volatile, corners of the market. They can trend strongly for long periods, but they also tend to overreact in the…
Today, we look at Larry Connor’s RSI strategy, published two decades ago, and show that it works just as well now as it did then. We have traded parts of the strategy since 2002, and we published the sell trigger…
Your best trading edge may not be a setup, indicator, or platform. It may be the traders you meet. If you connect with smart, adaptable traders, that is worth a ton more than anything else. The people you surround yourself…
Today, we’ll revisit a strategy we call the Low Risk Pullback Strategy. I first published this idea on the blog more than ten years ago, and it remains a useful concept for traders who prefer patience over chasing prices. Most…
The RSI Drop Trading Strategy is a systematic mean-reversion approach designed to identify these moments of temporary weakness. Instead of buying simply because a stock or market has fallen, the strategy uses the Relative Strength Index (RSI) to measure when…
Investors have a variety of options when it comes to investing strategies — Bond vs. Equity, Passive vs. Active, and Value vs. Growth strategy. Here, we focus on the two most popular strategies — Growth Investing and Value Investing. The…
The CCI (Commodity Channel Index) is a technical indicator that measures the current price level of a security relative to an average price level over a given period. It is a momentum oscillator that is used to identify extreme conditions,…
Different order types can result in vastly different outcomes, which is why it is important to understand the type of order you use. If you want your order to be filled at your specified price, go for a limit order….
Meb Faber has several times stated that he is a trend follower at heart. In 2015, he published an article about a momentum and trend-following strategy called Meb Faber’s Three-Way Model in gold, stocks, and bonds. The model came from…
Today we will look at another trend following strategy developed by a famous fund manager long ago. It’s called Fabian Timing Model and was developed by Richard Fabian in the 1960s. The Fabian timing model is a simple quantitative long-term trend…
Imagine making $100 million in a single day. That is reportedly what Paul Tudor Jones did during the 1987 stock market crash. But the most interesting part is not only how much he made. It is how simple the underlying…
Commodities, being closely tied to weather patterns and economic activity, exhibit high cyclical characteristics. Similarly, stocks also display cyclical tendencies. Given this, is there an opportunity to capitalize on their optimal performance? The commodities to equity ratio tries to do…
A trend following strategy for the S&P 500 is one of those ideas that seems almost too simple to work: be invested when the market is rising, and step aside when it starts falling. Despite this simplicity, the approach has…
Larry Connors‘ %b strategy is a mean-reversion strategy outlined in Chapter 5 of his book “High Probability Trading.” It involves buying when the close is above the 200-day moving average, and %b is below 0.2 for the last three consecutive days….
This article presents some trend following strategies on Bitcoin. Cryptocurrency markets have many of the characteristics of the commodities markets: Wild swings and gyrations, both up and down, exactly what is needed for trend following and momentum strategies. Does this…
Bollinger Band squeeze strategy is a popular approach for spotting low volatility breakouts before strong price moves begin. In all financial markets, volatility moves in cycles. Quiet periods with tight price action are often followed by sharp expansions in volatility….
The Death Cross trading signal is a staple of financial news, often used to spark fear when markets like the S&P 500 or Bitcoin begin to slide. But does this indicator actually predict a market crash, or is it just…
The magic behind Jim Simons’ trading strategies consists of collecting an enormous amount of data and analyzing the data to find statistical patterns and non-random events in a wide range of markets. Furthermore, Jim Simons and Renaissance Technologies have put…
The end-of-month effect (also called the Ultimo Effect) is a well-known trading strategy in the stock market. We have covered this anomaly before. Perhaps what is lesser known is that the effect spills over to the first three days of…
The era of burning venture capital just to inflate user numbers has officially hit a wall. For years, the standard playbook for growth hackers was simple: pump money into social media ads, jam traffic into a funnel, and hope a…
You are going to learn about Bollinger Bands trading strategies with backtests and performance in this article. This guide explains how to use Bollinger Bands for strong market entry and exit frames, exploiting periods of market calm and volatility alike….
A MACD histogram trading strategy identifies trend momentum shifts by measuring the distance between the MACD line and signal line. Key strategies include buying when bars shrink below the zero line (bottoming) or expanding above it (uptrend strength), and selling…
The 5-Day Low of The Range Strategy, with its simple criteria of IBS lower than 0.25 and the close lower than the lowest low of the previous 5 days, has shown remarkable results. Over the period from January 1993 until…
Momentum trading strategies are the practice of buying and selling assets according to the recent strength of price trends. Traders who use the strategy aim to buy securities that have been showing an upward price trend and short-sell securities that…
Rule-based trading is a method of making trading decisions with predefined rules instead of making every call in the moment. A solid ruleset usually covers what market you trade, what has to happen before you enter, how you get out,…
Paroli strategy in trading means increasing position size after wins and cutting it back after losses. That makes it a positive progression system, usually treated as a capped anti-Martingale. The short answer is simple: Paroli can change the shape of…
Introduced by the ISM in 1948, ISM Manufacturing Index, or PMI, is a useful resource for assessing the health of the US manufacturing sector. It is one of the key macroeconomic indicators financial market traders monitor on economic calendars because…
Crypto markets are all about discipline, not hunches, which plays well with traders who like rules over noise. Infrastructure choices deserve the same practical scrutiny. Tools such as NuxGame crypto casino software can be viewed through a quantitative lens. Think…
Easter is a Christian holiday celebrated across the world. But does it affect trading on the U.S. stock exchanges and other financial markets? We look at how the stock market performs before and after the Easter holiday. Additionally, we specifically…
While retail participation in financial markets has surged since the mid-2000s, especially following the 2020 pandemic and events like the 2021 GameStop short squeeze, retail traders often face the daunting challenge of competing with high-frequency trading (HFT) algorithms. Finding proven…
Can we make a successful momentum trading strategy? Momentum trading is the opposite of buying low and selling high: momentum is about buying strength. Yes, a momentum strategy for the S&P 500 works. Let’s show you why a momentum strategy…
Heikin Ashi are a modified price representation designed to filter out market noise and highlight trend direction more clearly than traditional Japanese candlesticks. Originally introduced to Western markets in the 1990s, this charting technique has become popular among traders looking…
Somewhere underneath the slick mobile apps and instant payment confirmations sits a core system that might be running on COBOL written in 1978. Not a guess — a documented reality for hundreds of institutions worldwide. In 2026, open banking mandates,…
August 2021 marked my 20-year anniversary as a full-time investor (day trading 2001-18), and I have learned a few trading lessons. I started trading when I was laid off after the dot-com bubble and dumped by my girlfriend. I thought…
Most people walk into a casino — or open one on their phone — and treat it as a coin flip dressed up in neon. Traders and systematic thinkers rarely make that mistake. For anyone who has spent time modeling…
What happens to stocks when bonds go up? Any stock investor or trader should have a basic understanding of the relationship between stocks and interest rates. Why? Because the interest rates influence investors’ risk appetite. When interest rates are high,…
There’s a question that comes up constantly among traders moving from spot exchanges into derivatives: are CFDs and spot crypto just different packaging for the same thing? The short answer is no, and the longer answer matters a lot if…
The options expiration happens on the Friday before the 3rd Saturday of each month in the US. An often referred to effect is the options expiration week effect. Is this effect real, or is it just a myth? In this…
A moving average crossover strategy uses two or more moving averages to generate objective buy and sell signals based on trend shifts. When the lines cross, traders have a clear, rule-based trigger for potential entries and exits. This approach removes…
This article presents the 7 best algo trading strategies for beginners. This is meant as a jump-start for anyone looking to move away from subjective opinions and toward data-driven trading. Before diving in, it’s important to understand the key concepts…
Over the years, we have come to a simple but uncomfortable conclusion: You don’t lose money because you lack a strategy. You lose money because you misunderstand what trading actually is. You might eventually discover a promising system. It might…
In Chapter 6 of Larry Connors’ High Probability Trading, there is a trading strategy called Multiple Days Up (MDU) and Multiple Days Down (MDD). The books by Larry Connors, including High Probability Trading, are considered key resources for traders interested…
Is a stop loss good or bad? What is the best stop-loss trading strategy? Are there alternatives to a stop-loss? How many different stop loss strategies are there? One mantra is repeated when you read books and blogs about trading:…
Whether candlestick patterns actually work depends heavily on how you define your entry and exit rules, as academic research shows mixed results ranging from no added value to statistically significant predictive power. While some candlestick patterns show a measurable historical…
The Short Interest Strategies. Is high short interest good or bad? Short interest in trading has been a hot topic during 2021 after Gamestop made short-sellers run for cover at prices many times higher than their entry price. But was…
How many times have we witnessed in our trading systems how trades move against our position? Many! Well, in this blog post, we will see how to analyze this behavior in our trades and what conclusions we can draw from…
Image source: Pexels Why are institutional investors suddenly treating player health and game momentum like blue-chip stocks? In 2026, the answer lies in the data. Sports have evolved from a weekend pastime into a high-fidelity data stream, generating millions of…
This article presents an ETF rotation strategy. Sector rotation is popular and this is not without merit. The idea is to be in the sector that shows the best recent momentum. Today we present an ETF momentum rotation trading strategy…
This article presents an ETF rotation strategy. Sector rotation is popular, and this is not without merit. The idea is to be in the sector that shows the best recent momentum. Today we present an ETF momentum rotation trading strategy…
Today, we provide you 5 swing trading strategies with backtest and trading rules Swing trading is a trading style focused on profiting from short- to medium-term price swings in stocks, ETFs, or other assets. Swing trading work involves capturing these…
Volatility ATR Bands strategy is a rules-based trading approach that uses volatility measures to time breakouts and reversals. It overlays dynamic price bands (centered on a moving average) set by the Average True Range (ATR) to capture volatility-driven moves. In…
The SuperTrend indicator is a type of trend following indicator that was created by trader Oliver Seban. It signals the direction of a trend, its continuation, or changes in direction. The primary function of the SuperTrend indicator is to help…
Heikin Ashi is a modified price representation designed to filter out market noise and highlight trend direction more clearly than traditional Japanese candlesticks. Originally introduced to Western markets in the 1990s, this charting technique has become popular among traders looking…
What happens to stocks when bonds go up? Any stock investor or trader should have a basic understanding of the relationship between stocks and interest rates. Why? Because the interest rates influence investors’ risk appetite. When you buy a bond,…
Can we make a successful momentum trading strategy? Momentum trading is the opposite of buying low and selling high: momentum is about buying strength. Momentum trading is an investment strategy that differs from traditional buy-low-sell-high approaches, focusing instead on capitalizing…
The RSI 2 strategy stands as one of the most researched mean reversion approaches in systematic trading. Developed by Larry Connors in the late 1990s and refined through his books “Street Smarts” (1996) and “Short Term Trading Strategies That Work”…
There are different ways to skin a cat, they say; but in trading, especially short-term trading, a Multi-Timeframe Analysis trading strategy might stand a shoulder above all. This method is widely used in financial markets to identify market trends and…
The Williams Percent Range (WPR) indicator was developed by the famous trader and tax rebel Larry Williams, who has given names to several technical indicators. Williams %R does work. In this article, we explain how to use Williams %R in…
When a stock is overbought, we can expect weaker returns than average over the next few days. But in the long term, returns gravitate toward the average returns. Thus, overbought stock markets only predict short-term results – not long-term. This…
IMG Quant trading often sounds more impressive when it looks complicated. Dense models, layered indicators, endless filters, and highly technical language can create the feeling that a system must be advanced to be effective. In practice, that is not always…
With trading strategies, there are many different ways to trade and as many different types of trading strategies. It’s important to remember that what works well for one person might not yield the same results for you. Conducting thorough data analysis and data-driven backtesting,…
Are you looking to make profits from day trading strategies but feeling overwhelmed by the numerous strategies out there? You’re not alone. Day trading can be a complex and high-risk endeavor, requiring a blend of knowledge, discipline, and timely execution….
Bond trading strategies are a great inclusion in a portfolio of strategies because they offer diversification and, most likely, uncorrelated returns. Bonds are complementary. First, you might want to have a look at other articles related to bond trading strategies:…
We call the strategy an intraday momentum trading strategy. This is a type of short term trading strategy that seeks to capitalize on rapid intraday price movements in trading assets such as the S&P 500 ETF. By focusing on intraday…
In this article, we present you a Gold Momentum Trading Strategy, originally based on research by Cyril Dujava of Quantpedia, suggests that gold performs significantly better when its momentum aligns with that of other asset classes – specifically US Treasuries….
Golden Cross Trading Strategy is famous and a cited phenomenon in the media. In this article, we look at the performance of the Golden Cross in the S&P 500. A Golden Cross involves two moving averages – one short and…
When bonds go down and interest rates go up stocks perform poorly. A lower price for the bond means that the yield and interest rates go up, and future cash flows get discounted at a higher rate. When rates go…
The Triple RSI trading strategy is a modified version of the RSI strategy with four key variables, three of which are based on the RSI. It focuses on mean reversion, and the trading rules involve conditions related to RSI readings,…
Algorithmic trading strategies today emphasize robust backtesting, strict rule definition, and parameter stability rather than curve-fit optimization. Modern systems combine mean reversion, momentum, and volatility filters to adapt to fragmented liquidity and faster execution environments. Reliable strategies define precise entry…
The 200-day moving average trading strategy is frequently used as an indicator in the financial markets. Who hasn’t heard about the “Death Cross”, “support at the moving averages”, “the trend is positive because the price is above the averages”, etc.? …
The Turnaround Tuesday trading strategy is a popular trading concept that targets stocks or indexes that fell sharply on Monday. The idea is simple: after a big drop, prices often rebound on Tuesday. Traders look for strong oversold moves on…
What are the 10 most reliable seasonal patterns? What if some of the market’s most consistent edges had nothing to do with indicators, news, or forecasts, but simply the calendar? For decades, certain seasonal patterns have shown up again and…
The overnight trading strategy in the S&P 500 involves entering a trade at the market’s close and exiting it at the following day’s open. Overnight trading refers to buying and selling financial instruments outside of the standard market hours. For…
Random Walk Theory Trading Strategy means stock prices move randomly and can’t be predicted — like flipping a coin. Popularized by Burton Malkiel in A Random Walk Down Wall Street, the idea suggests that trying to time the market is…
The NR7 trading strategy is a narrow-range strategy that is both well-known and popular. The NR7 trading strategy was introduced by Toby Crabel in his 1990 book, ‘Day Trading with Short-Term Price Patterns and Opening Range Breakout.’ The strategy focuses…
The Internal Bar Strength indicator (IBS) is a technical analysis methodology used to gauge market momentum and identify short-term price reversals based on the position of a financial instrument’s closing price within the bar’s range for the previous day. The…
(Source) It feels like a lifetime ago when Graphyte moved into real-time personalization engines in 2018, as AI-driven models were becoming a thing in iGaming. Almost a decade later, AI is no longer an add-on tool that gives industries a…
For decades, traders have used momentum strategies, the idea that past winners keep winning, to find success in equity, currency, and commodity markets. While most research focuses on long-term trends over months or years, a groundbreaking study by Wen et…
Friday the 13th has long been associated with bad luck, though the exact origin of the superstition is not known (to our knowledge). Those who grew up reading Donald Duck know the bad luck that happened on Friday the 13th….
What is the Choppiness Index? The Choppiness Index is an indicator created by an Australian commodity trader, Bill Dreiss, to show when a market is choppy or trending. A choppy market is one that is ranging or in a tight…
George Washington’s Day/Presidents’ Day is a federal holiday in the US. But does it affect the US stock market? The US financial markets are not stock market open on George Washington’s Day or Presidents’ Day. Trading does not take place…
What are the Acceleration Bands? Acceleration Bands refer to a technical indicator plotted as an overlay on the price chart to show the direction of the trend and the momentum of the price action. Like the Bollinger Bands, the acceleration…
Investing in the S&P 500 for the long term has historically been a surprisingly safe bet. Studies show that over any 10-year period, the chance of losing money is just around 6%—meaning there’s a 94% probability of ending with a…
What is the Ease of Movement Indicator? The Ease of Movement (EMV) is a volume-based oscillator developed by Richard Arms that quantifies the relationship between price change and volume. It identifies the “path of least resistance”: a large price increase…
Key Reversal Day Pattern signals are often the difference between catching a massive trend change and getting trapped in a “dead cat bounce.” While many traders see a price fluctuation and guess, professional price action traders look for the specific…
What is the True Strength Index Indicator? The True Strength Index (TSI) is a momentum indicator that is based on a double smoothing of price changes. It is an oscillator, swinging between limits of -100 and +100, with 0 as…
Understanding volume analysis is very necessary for successful trading, and one indicator you can use for such analysis is the Volume Rate of Change (VROC). Do you know about this indicator and how to use it? In trading, the Volume…
One thing about the financial trading world is that traders are always looking for more tools to analyze the markets, and one such emerging tool is the Relative Volatility Index (RVI). What do you know about this tool and how…
