The Gibson Talmud Portfolio by Roger Gibson aims to diversify investments across US stocks, REITs and bonds. The Gibson Talmud Portfolio strategy can be implemented with only 3 ETFs, of which 33.34% are US stocks, 33.33% are US REITs and 33.33% are mid-term treasury bonds. You do not need to pick individual stocks and bonds….
Most retail investors focus on companies’ fundamentals or valuations when deciding where to invest. But another important aspect to consider is in what context these companies operate: Is the economy growing or in a recession? What is the unemployment rate? Is inflation high? This is where macroeconomics enter. Macroeconomic trading is one of the most…
The Bernstein Coward’s Portfolio by Bill Bernstein aims to diversify investments as widely as possible across asset classes (bonds & stocks), countries, company size, and valuation. Bill Bernstein Coward’s Portfolio strategy can be implemented with only 9 ETFs, of which 60% are stock ETFs and 40% are bond ETFs. You do not need to pick…
Nowadays, data manipulation and programming are essential in finance for analyzing large datasets of historical data, modeling different financial scenarios, and, of course, backtesting trading strategies. But what do they use to do all this? The answer is Python. Python is the most popular programming language in finance, but most people think it is complicated…
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Can you help us grow and manage our social media accounts? Contact us! (TW, YT, TT & IG) We are looking for people who can write about trading, and preferably also can do backtesting. We mutually agree on pay. (Please provide examples of any piece you have written earlier – online or not.) We are…
In 2022 the bond market experienced the worst drawdown in its history, and since then volatility has been off the charts. It seems like rates are moving like tech stocks did in 2000. Luckily, this can be seen through the volatility index of the bond market, the MOVE index. The MOVE index is to the…
Out of the hundreds or thousands of technical indicators and oscillators that exist, the Klinger oscillator indicator is not one that comes to mind first. However, because it is not well known doesn’t mean it doesn’t work or that we should dismiss it. The Klinger Oscillator is a momentum indicator incorporating volume, price, and trend….
Today we are presenting three free mean reversion strategies. They were partially published on this website a few years back, and today we make some minor adjustments and present their performance on different ETFs. Furthermore, we discuss why mean reversion works and which markets are best for mean reversion trading strategies, and also some historical…
The Foreign Exchange or Forex market is one of the largest financial markets in the world in terms of trading volume, which is why it attracts many new traders every day. But what is forex trading, and how do you get started? What is forex trading for beginners strategy? Forex trading for beginners is the…
The Merriman Ultimate Buy And Hold Portfolio by Paul Merriman aims to diversify investments as widely as possible across asset classes (bonds & stocks), countries, company size, and valuation. The goal is to have aa portfolio that achieves good risk-adjusted returns. You implement Paul Merriman Ultimate Buy and Hold Portfolio strategy by using ETFs only….
Usually, timing strategies generate a lot of false signals that cause traders to lose money. To avoid that, today we will look at a strategy that does not generate false signals and can successfully predict the end of a bear market: A bull market signal. The bull signal is the following: 18 consecutive closes above…
An article about VIX trading strategies and explaining: what is the VIX and how does it work? The VIX is a fear index and shows the price you need to pay to get insurance in the stock market. In this article, we explain what the VIX is, how it works, whether or not it can…
We already discussed how to create and backtest a trading strategy using Chat GPT in a prior article and video, but today we are going to skip the idea generation stage and jump right into the trading rules and backtest: How to make a Bollinger Band strategy using ChatGPT. Bollinger bands are one of the…
Plenty of investors try to time the market. Most are unsuccessful due to a number of reasons. Thus, most investors should not time the market. However, most of the failures can be attributed to a few reasons. In this article, we look at some elements that we believe are required for successful market timing. At…
ChatGPT has been on everyone’s mind lately. People are discussing how it can improve productivity or help you solve programming bugs. But can ChatGPT be used for backtesting? ChatGPT can be helpful in trading as a tool for analyzing market data, generating trading ideas, and backtesting trading strategies. But it can be tricky to get…
Hedge funds employ many investing strategies, and the long-short equity strategy is one of them. But what does this long-short equity strategy mean? Long short equity strategy is a method of investing whereby a trader takes long positions in stocks that are expected to appreciate and, at the same time, takes short positions in stocks…
Research shows higher stock market returns from November through April than for the rest of the year. Can we confirm that there is a Halloween effect in trading? Yes, there is a Halloween effect in trading. From November to April, stocks perform significantly better than the rest of the year. Let’s dig a bit deeper…
A reader recently asked if we use Heikin Ashi Candlestick in our trading. So what exactly is Heikin Ashi? In this article, we will reconsider the price representation called Heikin-Ashi, and try to get something good out of the charting technique to use it for algorithmic trading. Can we make a Heikin Ashi trading strategy?…
There are different strategies available to traders, but not all would be suitable for everyone and every market. While some may prefer trend-following strategies, others may prefer mean-reversion strategies. But what are the best trading strategies? There is no one best trading strategy out there. Experienced traders know that there is no Holy Grail strategy…
“Give me a lever and I will lift the world for you!” Is this statement also valid for trading? How can we apply leverage to trading? We will answer this and other questions in this article. We will also look at how leverage affects a trading strategy. A leverage trading strategy is a trading strategy…
Holiday effects (or as they are also known calendar effects) are very well-known anomalies in trading. Around these dates, like the 4th of July or Thanksgiving, for example, the market tends to perform better over a short period of time. This can be for several reasons, such as low liquidity or lack of macro news….
The Death Cross in trading is a widely cited phenomenon in the financial media. As of writing, the media is full of stories about the price of Bitcoin being close to the Death Cross. In this article, we look at the performance of the Death Cross in the S&P 500. A Death Cross involves two…
Asset allocation is the allocation of investments across different classes of assets. In a broad sense, this means a combination of stocks, bonds, various securities and money market instruments. Within these classes, subclasses are also distinguished: Asset allocation strategy (strategies) We have provided several examples of backtested asset allocation strategies. Please click the link below:…
A big part of a successful trading strategy is seasonal trading. As we are about to see, this is especially true in commodities. Today we will look at a seasonal trading strategy for silver where we invest only in the best-performing months. Since 2001, it has outperformed buy and hold by more than 4% annually. …
Today we will look at Meb Faber’s Global Asset Allocation portfolio from his book of the same name. The Global Asset Allocation portfolio is a passive investment strategy that aims to provide investors with a diversified exposure to global asset classes. In this article, we will explore the portfolio’s key features, performance, and assess whether…
Today we will look at a portfolio published by Meb Faber in his book Global Asset Allocation. The Global Market Portfolio is a passive investment strategy that aims to capture the returns of the global financial markets by investing in a diversified mix of asset classes. Before 2000, the portfolio did a good job matching…
Trend following strategies and systems are popular, especially in the commodity markets, and we aim to shed some light on this type of investing in this article. In this article, we take a deeper look at explaining what trend following is. Do trend following systems work? Which markets do trend following strategies work on? Are…
Trend following has many followers, for some investors and traders trend following is like a religion. But does trend following work? And if so, why does it work? Yes, trend following does work. If we look at history, even simple trend strategies work remarkably well. In this article, we look at the MLM Index and…
Paul Merriman is a financial advisor and has presented several low-cost “passive” investment strategies. One of them is Paul Merriman 4 Fund Portfolio. What is it, and how has it performed? Paul Merriman 4 Fund Portfolio is a simple investment strategy consisting of four low-cost index funds with large caps, small caps, and small cap…
Peter Lynch is a famous but retired money manager. Lynch managed the Magellan Fund of Fidelity from 1977 to 1990 with outstanding returns: more than double the S&P 500’s return. Lynch made 29.2% annual returns for his investors and retired at his peak in 1990. He was a proponent of value investing, but is perhaps…
The RSI is one of the most popular indicators used in technical analysis. However, most people use it as a mean reversion indicator rather than a momentum indicator. Today, we show you an RSI range-momentum trading strategy. The RSI range-momentum trading strategy uses the RSI as a momentum indicator for identifying uptrends in stocks and…
Becoming a proficient trader involves recognizing when it’s best to trade, making it crucial to identify the art of knowing when to take the front seat. Consequently, determining the most favorable days to trade stocks is just as crucial as any other aspect. So, what are the best days to trade stocks? The best days…
