Author: Oddmund Groette

“In the short run, the market is a voting machine but in the long run, it is a weighing machine.” In the short-term, fear and greed is a major driver

Pairs trading involves market-neutral strategies that aim for profits in any type of market, be it sideways, down, or up. Jim Simons’ The Man Who Solved The Market describes the

The stochastic indicator is a standard indicator in any trading platform, but we rarely see it published in any trading strategies. Compared to the RSI, stochastics seems much less popular.

The famous trader and tax rebellion Larry Williams has given names to several technical indicators. Last week we wrote about WilliamsVixFix: WilliamsVixFix explained – does it work? This article explains

Back in 2007, the well-known trader and “indicator innovator” Larry Williams wrote an article in Active Trader about VIX and how you can create your synthetic VIX for any security

Something that a person or a particular group of people want very much to have or achieve. Cambridge Dictionary defines the Holy Grail Many traders are looking for the Holy

Are there any seasonalities in retail stocks? Some years ago, Jay Kaeppel published an article about retail seasonalities. Put short, the best month for retailers are November, March, and February

If you can’t stomach 50% declines in your investment, you will get the mediocre returns you deserve. Charlie Munger The share price of Berkshire Hathaway has declined more than 50%

A reader recently asked if we use Heikin Ashi in our trading. We don’t. Neither of us has ever heard of Heikin Ashi! So what exactly is Heikin Ashi? In

The Sharpe Ratio is a popular and widely used parameter for comparing the return and its risk. The name is given from its inventor, William Sharpe, who developed the ratio

How do you evaluate a trading strategy? In hindsight, it’s easy to judge a strategy by the result – the CAGR or the annual return. However, this is what Annie

This article explains candlesticks and why we like to use candlesticks when displaying charts. Moreover, we test quantitatively 23 different candlestick formations. Perhaps surprisingly, some of the formations work pretty

This article looks at the MACD-indicator, what it is, and how you can use it. Does it work? In which markets does it work best? Which timeframe is best? These

Chapter 6 of Larry Connors’ High Probability Trading contains a strategy called Multiple Days Up (MDU) And Multiple Days Down (MDD). The book was published in 2009, the trading tests

There are many approaches on how to make money in the markets. Some use fundamental factors, others use technical analysis, while others might crunch numbers to get an edge. The

The first trading day of 2021 started with a “mini-crash”. The S&P 500 fell 1.36% and the Nasdaq fell 1.41%. We have previously established the end of the month effect:

In chapter 5 of Larry Connors’ book High Probability Trading, published in 2009, there is a strategy called %b strategy. The book contains many strategies which we test in chronological