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Last Updated on September 24, 2022 by Oddmund Groette Short strategies can add tremendous value to a portfolio of trading strategies, something we have covered in multiple articles (see below). A bear market is mostly good for short term traders, see our post about bear market strategy, but profitable short strategies can add fuel to …
Last Updated on September 23, 2022 by Oddmund Groette It is important to be able to identify the beginning of a new trend; equally, it is also important to be able to identify the end of a trend. A well-timed entry fits perfectly with a well-timed exit. The parabolic stop and reverse (SAR) indicator is …
Last Updated on September 19, 2022 by Quantified Trading A trader in a losing stock position has only a few options: they can close the trade at a loss and look for opportunities elsewhere; they can hold the losing position for a while and hope that the price will turn around and get to their …
Last Updated on September 19, 2022 by Quantified Trading Rolling returns for the S&P 500 are important to understand. Not only for S&P 500 but rolling returns are essential for any investment you make. What are rolling returns and how do you calculate them? What have been the rolling returns for S&P 500? Rolling returns …
Last Updated on September 19, 2022 by Quantified Trading Most US taxpayers have a deadline on the 15th of April to file their tax returns. If the date is on a Saturday, Sunday, or legal holiday, the due date is delayed until the next business day. Does Tax Day signal any bullish or bearish trading …
Last Updated on September 19, 2022 by Quantified Trading The crypto market has been subject to high volatility which is one of the thrills that drive investors and traders alike. With high volatility comes substantial profit (and loss). Over the years, traders have tried and applied different strategies to increase their performance in the market. …
Last Updated on September 19, 2022 by Quantified Trading As a stock market trader, you must have been conversant with the phrases like a bull, a bull run, and a bull market. Those are phrases used to describe buying sentiment in the market. But what actually does bull market trading strategy mean? Bull market strategy …
Last Updated on September 19, 2022 by Quantified Trading The financial markets always cycle between bull and bear markets. If you want to trade the stock market, you should know how to play both market conditions. So, what is a bear market trading strategy? Bear market strategy refers to the techniques traders and investors use …
Last Updated on September 19, 2022 by Quantified Trading Traders often look for ways to measure the price momentum. The rate of change (ROC) is one of the most commonly used indicators for that. Let’s take a look at the indicator. Often referred to as the momentum indicator, the rate of change (ROC) is a …
Last Updated on September 19, 2022 by Quantified Trading Have you ever wondered what are the best performing stock markets in the world? Almost every country has a functional stock market, but not all countries’ stock markets have been performing the same. If your great-great-grandfather had invested $1 in the U.S. stock market in 1900, …
Last Updated on September 19, 2022 by Quantified Trading The S&P 500 Index is categorized into 11 sectors, and investors try to profit from the various sectors. One simple way to profit from the market is the sector trading strategy. But what is sector trading strategy all about? The sector trading strategy is a technique …
Last Updated on September 19, 2022 by Quantified Trading Commodity trading offers plenty of opportunities to profit from the price movements of various commodities. But to succeed, you must first understand what it is and the strategies to use. It’s not easy developing a commodity trading strategy. Commodity trading involves buying and selling various commodities …
Last Updated on September 19, 2022 by Quantified Trading There are times when the prices of stocks move as a result of what other investors are doing rather than based on the company’s underlying business fundamentals. One of such events is the short squeeze. A short squeeze happens when there is a high volume of …
Last Updated on September 19, 2022 by Quantified Trading Market indicators are an integral component of technical analysis. They help traders in making market decisions. Some indicators are designed to show the direction of a trend while others simply tell when a trend reversal is imminent. In this article, we look at one of the …
Last Updated on September 19, 2022 by Quantified Trading Stock indexes are widely used as benchmarks for tracking a basket of stocks within a particular sector or segment of the market. Investors use the indexes to assess the overall health of the sector, they compare the performance of their own holdings, or they simply have …
Last Updated on September 19, 2022 by Quantified Trading In January 2003, the S&P 500 Equal Weight Index (EWI) was created, and since then, you can trade ETFs that track the index. But what does this equal weight S&P 500 index mean? As the name implies, the EWI is an equal-weight version of the popular …
Last Updated on September 19, 2022 by Quantified Trading As of writing (August 2022), we have published 19 different monthly trading edges in the following ETFs (or you can also trade any relevant futures contracts): SPY, QQQ, XLP, TLT, FXI, SIL, XLU, DAX, and HYG. The strategies are divided into swing trading strategies and overnight …
Last Updated on September 19, 2022 by Quantified Trading One of Warren Buffett’s investment advice is, “Be fearful when others are greedy and greedy when others are fearful!” That basically explains the contrarian trading strategy. The contrarian trading strategy is one that goes against the prevailing sentiment in the market. In other words, it is …
Last Updated on September 19, 2022 by Quantified Trading Energy sector trading is the process of gaining exposure to multiple stocks in the energy sector as a means of diversification and generating profits. Investment can be done by buying an ETF that tracks the sector or by building a portfolio of energy stocks. If you …
Last Updated on September 19, 2022 by Quantified Trading Stocks in the healthcare sector are affected by various factors, but they tend to be recession-defensive because health is essential to life. In this article, we look at a healthcare sector trading strategy. The healthcare sector might add diversification to your portfolio of trading strategies. The …
Last Updated on September 19, 2022 by Quantified Trading The information technology sector has the highest weighting in the S&P 500 index, representing more than a quarter of the index’s market cap. Over the last decade the sector has been “hot” and had a spectacular bull market. In this article, we take a brief look …
Last Updated on September 19, 2022 by Quantified Trading With the tight regulations that followed the 2008/2009 financial crisis, this sector has been stable with steady growth. But let’s see what it has to offer. In this article, we discuss the US financial sector and we show you an example of a financial services trading …
Last Updated on September 19, 2022 by Quantified Trading Frequently you can hear about an inside day, especially in the stock market. What is an inside day in trading? Is an inside day profitable? Can you use inside days as trading signals and develop inside day strategies? In this article, we explain what an inside …
Last Updated on September 19, 2022 by Quantified Trading As the name implies, this sector covers different industries that make use of heavy equipment and involves high-level engineering. In this article, we discuss what kind of stocks that are within the industrials sector and how you can trade them. Unfortunately, in the industrials sector it …
Last Updated on September 19, 2022 by Quantified Trading The real estate industry group, previously stuffed inside the Financials sector, was elevated to a market sector level in 2016, making it the 11th sector in the S&P 500 index. Let’s take a look at the newest addition to the S&P sectors to see what it …
Last Updated on September 19, 2022 by Quantified Trading The material sector is considered the primary producer in the supply chain because the companies here provide the raw materials used by other industries. Stocks in this sector tend to do well in a strong economy. However, the sector is not an easy one to trade, …
Last Updated on September 19, 2022 by Quantified Trading The Dow Theory is widely considered one of the earliest forms of technical analysis in the western world and has always been a very integral part of technical analysis since then. But what is the theory about? The Dow Theory strategy is a technical analysis model …
Last Updated on September 19, 2022 by Quantified Trading The DMI is often known on most trading platforms by its third component, the average directional index (ADX). Not many know what the DMI is. Let’s take a look at it. The DMI (directional movement index) is a trend indicator that shows the strength of a …
Last Updated on September 19, 2022 by Quantified Trading Technical indicators offer powerful insights into what is happening in the market. While price is a factor in technical analysis, volume is as important as price as this tells traders the level of activity on a given security. The on-balance volume is one of the most …
Last Updated on September 19, 2022 by Quantified Trading Which Trading Subject Do You Prefer To Read? We have made a survey that you can finish in less than a minute. If you take the time to fill out the survey, we believe it can help us write better and more interesting articles! Loading…
...Last Updated on September 19, 2022 by Quantified Trading One of the more peculiar effects on the S&P 500 is the huge difference in performance between odd and even days. It turns out that one type of calendar day is much better than the other. Can we develop a trading strategy based on odd and …
Last Updated on September 19, 2022 by Quantified Trading Technical indicators help traders in timing the market, and the CCI is one of the indicators you can effectively use to time the momentum in the market. But what exactly is the CCI, and what does it tell you about the market? The CCI (Commodity Channel …
Last Updated on September 19, 2022 by Quantified Trading It seems that traders are becoming increasingly interested in the classical methods of technical analysis, and the use of trading channels have become popular again in the 21st century. Since Williams Volatility Channel is getting very popular among traders, you may be wondering what it is. …
Last Updated on September 19, 2022 by Quantified Trading Risk management is a very important aspect of trading. One of the most useful indicators for assessing risks is the Ulcer Index. What is the index, and what does it tell you? The Ulcer Index (UI) is a volatility indicator that measures downside risk in terms …
Last Updated on September 19, 2022 by Quantified Trading We have in a previous article determined that there is a positive holiday effect in stocks. This effect happens on the days before the holiday. But is there an opposite effect? Is there a post-holiday seasonal effect in the stock market? Yes, there are certain tradeable …
Last Updated on September 19, 2022 by Quantified Trading Many traders fear a bear market would be really bad for their trading. Is this true? Should you trade during a recession? What does the data say? We did some backtests to see what happens to a trading strategy in a recession (bear market) in our …
Last Updated on September 19, 2022 by Quantified Trading Which is the best indicator for swing trading? There are many indicators to choose from, but in this article, we will try to answer which indicators that are best for this type of trading. There are many bells and whistles on the trading platforms, but we …
Last Updated on September 19, 2022 by Quantified Trading Only a few people succeed at trading, and those who do, take a long time to learn their craft. As with every other profession, it takes time to understand the different elements of trading. Why Do People Think Trading Is So Easy (When It Is Not)? …
Last Updated on September 19, 2022 by Quantified Trading Candlesticks are a popular charting tool because they “packs” data recordings into single easy-to-read price bars. The time frame of your choice can easily be interpreted in just one visual look at the chart. All charts on this website use candlesticks. You might agree they are …
Last Updated on September 19, 2022 by Quantified Trading News and Trading With the availability of online news sources, including social media and trading forums, we consume a lot of irrelevant news that has no value to our trading success and may even be toxic to our minds. How important is news to trading? As …
Last Updated on September 19, 2022 by Quantified Trading We have yet to see much quantified backtest of candlestick patterns. Practically all candlestick “analysis” is based on anecdotal evidence and some random charts showing successful trades (and ignoring the bad ones). Do candlesticks really work? We decided to find out and we sat down to …
Last Updated on September 19, 2022 by Quantified Trading The communication services sector has seen stable long-term growth, as electronic communication has now become an essential part of life for people and businesses. In this article, we discuss what the communication sector is and we try to develop a communication sector trading strategy. Unfortunately, the …
Last Updated on September 19, 2022 by Quantified TradingThanksgiving Day is one of the federal holidays in the US. The day after Thanksgiving is called Black Friday and is a day when consumers go on a shopping spree. But how does Thanksgiving affect the US stock markets? Stock market performance during Thanksgiving is higher than …
Last Updated on September 19, 2022 by Quantified Trading The NAAIM Exposure Index is becoming a popular indicator for tracking investor sentiment. But what is it about? Compiled by the National Association of Active Investment Managers (NAAIM), the NAAIM Exposure Index represents the average exposure to US Equity markets reported by its members. The indicator …
Last Updated on September 19, 2022 by Quantified Trading Candlesticks are a popular charting tool and are frequently used by promoters using anecdotal evidence. We use candlesticks in our charts ourselves, but not as a predictive tool in our trading strategies. In this article, we ask: do candlesticks work? Yes, candlesticks work. We test 23 …
Last Updated on September 19, 2022 by Quantified Trading Doji trading strategies are popular and the doji pattern is one of the most famous candlestick patterns. Candlestick patterns have several “derivatives” and can be used together with other bars. There are at least 64 different candlestick patterns that have been given a name, please read …
Last Updated on September 19, 2022 by Quantified Trading 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 any predictive value. We use candlesticks extensively ourselves for charting because we believe they give a …
Last Updated on September 19, 2022 by Quantified Trading In the United States, a presidential election is held every four years. Those presidential elections have been observed to affect many government sectors, including legislation, international relations, and even the stock market. This occurrence inspired the concept of presidential election cycles. But what exactly are they? …
Last Updated on September 19, 2022 by Quantified Trading The Put-Call ratio is a popular sentiment indicator. Extreme readings, mostly signaling panic and climax, are often used as contrarian signals to fade the market. For example, a high put reading might signal that traders and investors are panicking and are buying downside insurance (put options …
Last Updated on September 19, 2022 by Quantified Trading Turtle trading strategies are a trading approach named after Richard Dennis’ popular trading experiment in 1983. The experiment was to determine whether trading was an inborn skill or could be learned. The turtle trading experiment was a huge success, and the strategy employed by those traders …
Last Updated on September 19, 2022 by Quantified Trading Dogs Of The Dow (DOD) Some investment strategies allow you to enjoy maximum dividend income, and Dogs of the Dow is one of such. But what does it really mean and how has it performed lately? Dogs of the Dow is a stock-picking strategy for selecting …
Last Updated on September 19, 2022 by Quantified Trading You might wonder which time frame to watch when day trading. Instinctively you might believe you need intraday bars, ie bars 5-minute bars, 60-minute bars, etc. However, after reading this article we hope you are reconsidering. Can you day trade with daily bars? Yes, you can …
Last Updated on September 19, 2022 by Quantified Trading This short-selling strategy bundle consists of three short strategies. The idea and logic work in a variety of assets, not only the three different below. Entries are on the close or the next open (and the same for exits). In all our bundles you will find …
Last Updated on September 19, 2022 by Quantified Trading This bundle consists of three strategies that can be labeled volatility trading strategies. The idea and logic work in a variety of assets. In all our bundles you will find both Amibroker code, Tradestation code, and the strategy written in plain English. The strategies are long-only …
Last Updated on September 19, 2022 by Quantified Trading We have put together a “strategy pack” (bundle) of 3 strategies in S&P 500 (SPY or ES). The bundle consists of three strategies that we believe complement each other. In all our bundles you will find both Amibroker code, Tradestation code and the strategy written in …
Last Updated on September 19, 2022 by Quantified Trading Consumer confidence tries to gauge the temperature of the economy. It swings from pessimism to optimism – just like Mr. Market who is rather manic-depressive. In the US it’s made by the Conference board and it casts doom and gloom on a monthly basis. Consumer confidence …
Last Updated on September 19, 2022 by Quantified Trading RSI is mostly used as a reversal or contrarian indicator. In most stock markets, this has worked really well over the last 30 years. But what if we flip it and use it as a momentum indicator instead to make a RSI momentum strategy? Can we …
Last Updated on September 19, 2022 by Quantified Trading 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 look at the performance of stocks …
Last Updated on September 19, 2022 by Quantified Trading Which trading hour is the best? Does the time of day make a difference when trading? When should you buy and sell during the trading day? Seasonal trading strategies can take many forms and in any time frame. This article looks at intraday data for some …
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Last Updated on September 23, 2022 by Quantified Trading