Quantified Strategies

You frequently hear media refer to games and markets as zero-sum games. Is the stock market a zero-sum game? Yes, we define the stock market as a zero-sum game, both

Zweig Breadth Thrust Indicator is a market breadth indicator that helps you understand the internal strength of the market, at least that’s what the theory says. There are many breadth

Why trade the XLU and utility stocks? Even though utility stocks are probably one of the most boring stocks, they offer diversification. In this article, we discuss the consumer staple

In 2009 Atul Gawande, a professor of surgery, published a book called The Checklist Manifesto – How To Get Things Right. The book is a good read and is relevant

We have previously discussed and written why the 200-day moving average works: because you play defense if a severe recession hits. But can you combine a long-term defensive trend-following strategy

This article looks at how likely you are to go broke as retired or FIRE. Low interest rates make many pensioners and those who retire early (FIRE) allocate more and

The higher highs and higher lows pattern signals an uptrend. Is this likely to continue or reverse? In almost all markets, the higher high and higher low pattern signals weak

The lower highs and lower lows pattern signals a downtrend. Is this likely to continue or reverse? In almost all markets, the lower high and lower low pattern signals a

In the stock market, and especially in trading, it’s easy to fool yourself. The famous scientist Richard Feynman once said that the first principle is that you must not fool

Most investors and traders are aware of the differences between dollar-cost averaging vs lump sum investing. But what role do luck and randomness play in determining the best strategy –

What is the return during the last hour of trading? A search on the internet reveals that traders should beware the last hour of trading and that volatility picks up.

Short selling often makes headlines because of so-called short squeezes or when the media is full of predictions about a market top. Stocks are at an all-time high in terms

Opening range breakout trading strategies are popular strategies, perhaps because of Tony Crabel’s classical trading book published in 1990: Day trading With Short Term Price Patterns And Opening Range Breakout.

Yes, our backtests indicate that there is an end of month effect in Bitcoin and this can potentially be a viable turn of the month trading strategy.  The end of

Which oscillating indicator is the best for trading strategies? When you start out in trading it might be a daunting task to understand all the bells and whistles provided by

Slippage is probably the enemy number one for short-term traders. What is slippage in live trading and how much slippage can you expect to have in live trading? What is

Does RSI work on crypto or Bitcoin? Bitcoin and other cryptos are attracting many traders and new investors, and the crypto daily volume is rising significantly, probably draining resources from

We believe the best way to learn to trade is by backtesting and trial and error, but you can get valuable input from traders who have been successful. This post

The Euro Bund futures contract shows weak seasonal performance during the futures expiration week. The contract has ticker code FGBL, is issued by Germany, has a maturity between 8.5 and

What percentage of day traders fail? In the midst of a speculating frenzy and the madness of crowds, it’s easy to get trapped into the belief that day trading is

Our backtests indicate that both DAX 40 and Euro Stoxx 50 have much better performance during the futures expiration week compared to any other random week. Let’s start with the

The Euro Stoxx 50 has mixed performance the week after futures expiration. Euro Stoxx 50 is a very popular trading vehicle. It’s one of the most traded futures contracts in

What percentage of traders fail? What percentage of traders are successful? How likely are you to succeed as a trader? Frequently, we read that 90% of traders fail to make

The Euro Bund (FGBL) shows significant positive performance following the expiration of the previous future contract. The Euro Bund (FGBL) is a bond contract with a maturity of 8.5 to

The Congressional Effect in stocks– we suspect you have never heard of it. Neither had we! But this is one of the many seasonal effects in the stock market. The

Our backtests suggest that NIFTY 50 has a positive end of month effect. A variation of the inputs does not change the result dramatically, thus the end of month effect

The Santa Claus Rally in DAX and Euro Stoxx 50 Our backtests show significantly better performance during the Christmas season and the end of the year. The Santa Claus rally

Trading the week after futures expiration in DAX 40 This article looks at the performance of the DAX futures contracts in the week after the expiration of the contract. DAX

The Santa Claus Rally In Emerging Markets One of the seasonal strongest periods is approaching: the Christmas holiday. The Santa Claus Rally or the end of the year effect has

Can we find the same Santa Claus Rally in NIFTY as we do in the US? We are approaching perhaps the strongest two/three weeks of the year: the Santa Claus

Weekly RSI vs daily RSI – what is best? This is a bit like comparing apples to oranges. It might be the same indicator, but RSI can deliver substantially different

What is an unfilled gap in trading? An unfilled gap in trading happens when all the price action today is either lower than yesterday’s low (gap down) or higher than

Candlesticks are popular. They are very useful for visual displays, but our previous backtests indicate candlesticks might be useful to make trading strategies as well. In this article, we look

What role can risk-mitigating and defensive assets play in a portfolio? Do we use them only to seek shelter until the passing of financial storms? Contrary to what we learn

Very few bullish candlestick patterns work, but this article presents 3 bullish candlestick patterns that work. Even though Candlesticks are a popular charting method, very few of the patterns have