The RSI trading strategy identifies overbought and oversold conditions in markets, measuring momentum on a scale. Readings above indicate overbought, while below signify oversold. Traders monitor divergence between price and RSI for potential reversals, often confirming with other indicators. Effective…
There are many popular momentum oscillators available for technical analysis today, but this forgotten oscillator — the Kairi Relative Index — can still be very effective for swing trading if you know how to use it. What do you know…
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…
The RSI indicator is one of the most popular and well-known trading indicators out there. It’s used by many to analyze the markets in search of profitable entries and exits. Before going any further, let’s just define what RSI is….
Covered calls trading strategy looks tempting when interest rates and dividend yields are down because many investors and traders look for additional ways to generate “income”. Many pundits promise both good returns and “income” if you issue call options on…
Can you make money on a bullish or bearish AAII market sentiment indicator? When the pessimists turn optimistic and the optimists turn pessimistic, a bottom or top is formed. If you understand market sentiment and where traders and investors feel…
In the fast-paced world of financial trading, traders are always looking for better indicators to improve their analysis of the markets — one such indicator is the Gaussian Filter. What do you know about this indicator? The Gaussian filter is…
Traders might have different personality traits. What is the best personality type for trading? Most traders focus on finding a trading edge in the market by developing good and robust trading strategies. But many neglect one very important factor for…
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…
This article presents a personality test for traders. Brett Steenbarger is a famous trading psychologist who has written the bestseller The Psychology Of Trading. In the book, Steenbarger referred to personality traits that tend to distinguish good from bad traders….
Nassim Nicholas Taleb is a world-known statistician, mathematician, philosopher, trader, and investor, and his primary interests evolve around randomness, uncertainty, and probabilities. Taleb came into the limelight after his book called Black Swan became a best seller, but in our…
Curve fitting is when a strategy or edge is not fit to market behavior, but market noise, leading to failure in live trading. Curve fitting (overfitting) is overoptimization that is unlikely to fit into future unknown data. You have probably…
Why is drawdown in trading important? Why should you spend time thinking about what is a good max drawdown percentage? How you prepare and deal with drawdowns in trading is important. Why is it important? Because a drawdown makes you fiddle, change, abandon your…
NFP reports are known to induce volatility in the financial markets, as well as set the tone for price movements each month. So, it is in your interest as a trader to know how to read the NFP report and…
When stock markets are 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…
When stock markets are oversold, we can expect strong returns over the next few days. But in the long term, returns gravitate toward the average returns. Thus, oversold stock markets only predict short-term results, not long-term. We do a backtest…
As traders, we rely on different tools to analyze price movements and gain meaningful insights into the nature and direction of the market — one tool that can help show the direction of price movements is the Displaced Moving Average…
Linear vs logarithmic charts and scale is important to understand because the difference between linear and logarithmic charts might be huge – the bigger the scale the more it matters. The difference between a linear chart and a log scale…
Navigating the erratic world of financial markets can be a daunting task, which is why traders are always seeking better tools to improve their technical analysis — one such tool is the Twiggs Money Flow indicator. What do you know…
How do you calculate the future inflation rate? Is it possible? Yes, it’s possible to estimate the future inflation rate. In this article, we show you how you can interpret what the traders in the bond markets believe about future…
Martin Luther King Jr. Day is one of the federal holidays observed in the US. How does it affect trading on the US stock markets? The US financial markets do not open on Martin Luther King Jr. Day, which is…
Inflation is one of the most popular and important economic indicators. It is monitored by everyone — businesses, financial regulators, and investors. Not only does it guide regulators in their policies, but also, it affects businesses, which in turn, influences…
Determining your S&P 500 investment returns is crucial for financial planning. Using our s p 500 return calculator, you can gauge both historical performance and future potential. This article guides you through the process, ensuring you maximize the tool for…
In financial trading, as with most aspects of life, everything is getting automated, thanks to advances in artificial intelligence and machine learning. From vital signs in cardiology practice to price changes in the financial market, people are building systems that…
To become a quant trader is difficult and takes years of experience with trial and error. It’s more important that you possess trading skills than coding skills. Connecting to already successful quants is a huge advantage. Having an interest in…
Trading Strategy Optimization, is it good for trading? Are optimizers error maximizes? Do small input errors result in large output errors? Stay tuned, and you’ll find out why trading strategy optimization is smart – when you know what you are…
When it comes to trading, you can either use mechanical trading strategies or discretionary trading strategies. What is the difference, and which is better? Let’s find out. Mechanical trading strategies refer to automated trading using trading algorithms with pre-set instructions….
Quant trading works because it’s based on objective and backtested trading rules. We believe it is the correct way to approach short-term trading. Even better, we believe it potentially can work for anyone who is a keen learner – you…
Here is a Tradingview Pine Script Strategy. TradingView is a popular tool with many traders due to its vast array of tools and features. TradingView uses its native code language, Pine Script, to implement indicators and backtest trading strategies. Here…
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…
If you have come so far in your trading that you rely on backtesting to validate your trading strategies, you definitely are ahead of the masses. Most people haven’t understood that all strategies and patterns they want to trade need…
Can you buy stocks on the weekend? Trading stocks over the weekend can be a good opportunity for professional as well as part-time traders to brush up their skills while maximizing their returns. Yes, traders can trade stocks over the…
Tail risk is the risk of extreme losses that occur outside of the normal distribution of returns. It is also known as fat tail risk because the distribution of returns has a fatter tail than a normal distribution. Backtesting is…
Monte Carlo simulation in trading and investing is a tool frequently used in blogs and backtests. Can Monte Carlo backtesting be used to measure risk and uncertainty? Yes, it turns out you can use it in the financial markets: Monte…
Survivorship bias in trading and backtesting is about the things we don’t see or to a certain degree ignore. We tend to see the winners and not the losers. Unfortunately, this is very typical in trading and backtesting. To avoid…
There are 252 trading days per year for the U.S. stock market. The number may vary from year to year, as not every year has 252 trading days. For example, the 2020 trading year consists of 253 trading days, but…
Seeking to invest smartly in the markets? Backtesting is your first step — a method to trial trading strategies with past market data before risking actual money. This article unpacks backtesting from A to Z, teaching you how to employ…
Let’s see how to build a trading strategy based on the popular RSI indicator using TradingView (step by step) in the crypto market, from building the layout to implementing its native Pine Script language. Our RSI-based trading strategy will seek…
To succeed at trading, you must ensure you have a positive statistical expectancy and the ability to follow the strategy. What is statistical expectancy? Simply put, it’s the probability that your trading strategy will produce a profit over a large…
Quantified trading strategies are strategies based on finding inefficiencies in financial markets based on numbers, math, data, and statistics. This is done by studying historical data from the past, mostly time series of the price of financial instruments, and the…
Most traders test their trading ideas on all their available data and conclude “yes or no” to go live with the strategy. But it’s a major problem with this method: You test on known data – not unknown. Almost all…
I record every trade I make in Excel. I categorize them into short/long, which day of the week, date, where the market opened, how the market performed the day before, how the stock performed the day before, average volume in…
This article looks at the world of trading, uncovering trading statistics, truths, facts, and realities that shed light on many things you probably didn’t know about trading in stocks, futures, ETFs, and crypto. But first some key takeaways. Key Takeaways: Trading…
In trading, there are times, especially for swing trading, when we may want to focus on individual price swings rather than the trend — one indicator that can help with that is the David Varadi Oscillator. What do you know…
Lately, I have done some research trying to develop some new daytrading strategies. I have tested many trading strategies that buy or sell at the open (OPG). The exit has been after two hours or on the close (MOC). An…
The January Effect Stock Market is a well-known seasonality and anomaly. The January Effect was first observed by investment banker Sidney Wachtel in 1925. It refers to the tendency for stock prices to rise in January. This anomaly has puzzled investors…
Futures trading strategies often involve hedging against price movements to protect investments, utilizing contracts to buy or sell assets at predetermined prices in the future. Traders might also employ speculative strategies, aiming to profit from price changes by predicting market…
Here we are presenting a lot of very interesting Day Trading Statistics that will probably shock or at least surprise a lot of readers. Day trading has witnessed a surge in popularity. The rise of internet trading platforms and social…
Which technical indicators will give you an edge in the markets? Traders look to these tools for signals about where prices might be headed. This guide details the top 100 trading indicators in trading, explaining their uses and highlighting their…
When it comes to the financial markets, there are many investment options to choose from, but experienced investors know that stocks are always the best investment in the long term. And here is why we think so. Stocks are considered…
Cryptocurrencies are a weird beast. They sit between finance and philosophy, science fiction and hard math. Bitcoin, the OG of them all, is no exception. Its value moves like the tides—predictable in hindsight, mysterious in the moment and can wipe…
There are many seasonals in the financial markets. Today, we are looking at the performance for stocks, bonds, and gold when a new year starts. Is there a start of the year rally? Related reading: Start of the year rally…
Watching stock market movies can help you understand basic financial concepts and make sense of the financial world of trading and investing, which is why we recommend these 16 Best Trading and Stock Market Movies of All Time for you….
As the year is drawing to a close, you might have heard about an end-of-year stock market rally. Is this seasonality true, fiction, or myth? The end of year rally is no myth or fiction: research shows that stocks tend to…
Crypto trading can be a very lucrative income source, especially for those who are able to follow market trends and make their trades at the perfect time. The value of a cryptocurrency depends on market forces and can be quite…
Frequently adjusting your trading indicator to suit the ever-changing conditions of financial markets can be a daunting task, even for seasoned traders, which is why adaptive indicators, like the Adaptive Cyber Cycle, can be a game changer. What do you…
The rise of new technology has reshaped the financial world as well as taken some of the ideas people have about money and seriously challenged them. There have been a lot of modern technologies that have altered the way that…
Christmas Day is one of the federal holidays in the US. It’s a well-known “fact” that there is normally a Santa Claus rally in stocks, but do we see the same tendencies in the gold price? Is there a Christmas/Santa…
Christmas Day is one of the federal holidays in the US. But how does it affect the US financial markets? Is there a Santa Claus rally in stocks? Can we develop trading strategies for this holiday season? Our trading strategy…
Is it correct that copper is a leading indicator for stocks? Can we make a copper vs. stocks strategy? No, copper is most likely not a good leading indicator for stocks. Our copper vs. stocks trading strategy might be due…
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 is no myth in Europe, either! The end of year…
In the fast-paced world of semiconductor stocks, the VanEck Semiconductor ETF (SMH) offers a unique gateway to this high-growth sector. However, success in trading SMH isn’t just about market exposure—it’s about precision and strategy, preferably backtested. A robust trading plan…
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….
In the fast-paced world of financial markets, leading indicators that can predict market movements and show where to buy or sell are hard to come by, which is what makes the Volume Zone Oscillator (VZO) a very special tool in…
In technical analysis of the financial markets, volume indicators serve as a valuable tool for evaluating the level of activity in a market to ascertain the force behind a price move — one such volume indicator is the Volume Accumulation…
How to deal with drawdowns in trading is important. Why? Because a drawdown makes you fiddle, change, abandon your strategies or stop trading altogether. Thus, a good trading plan deals with drawdowns before they inevitably happen. Our anecdotal experience indicates…
We have updated all our strategies with equity charts and performance metrics/statistics: Trading strategies for sale. We have also added plenty more futures strategies. All bundles are also updated: If you are a first-time customer, we will give you a…
Active traders, especially swing traders like to use oscillators to track the momentum of individual price swings to know when to get in at the beginning of an impulse swing — one oscillator that does a good job is the…
Traders rely on many tools to analyze the markets effectively and gain meaningful insights into the trend direction and the dynamics of the price swings — one tool that may help with this analysis is the Raff Regression Channel. What…
When it comes to mastering the markets, having a strong foundation of knowledge is key. Over the years, I’ve come across and read a variety of trading strategy books that have made a significant impact on my approach to trading….
Curious about how to trade GBP CAD trading effectively? This guide covers everything you need to know—from the best trading strategies and timing to key economic indicators that impact the GBP/CAD currency pair. Key Takeaways Importance of GBP/CAD in Forex…
Looking for an effective GBP NZD trading strategy? This guide is for you. The GBP/NZD pair is known for its high volatility, offering numerous trading opportunities. In this article, we cover the key factors influencing this pair, various GBP NZD…
The AUDCHF currency pair represents the exchange rate between the Australian Dollar (AUD) and the Swiss Franc (CHF). It showcases the comparative strength of the two currencies based on the economic performance of Australia and Switzerland. As both economies are…
Looking for an EURNZD forex trading strategy for better returns? This post will walk you through the most effective trading techniques and knowledge for the EURNZD pair. You’ll learn how to understand economic indicators, manage risk effectively, and implement strategies…
Curious about NZD/CHF trading? This guide will provide you with everything you need to get started, from market analysis to effective trading strategies. Learn how to trade the New Zealand Dollar against the Swiss Franc. Key Takeaways Understanding NZD CHF…
There are many currency pairs available for trading. One of them is the GBPJPY pair. What is your GBPJPY trading strategy? A GBPJPY trading strategy is an act of exchanging JPY for GBP or exchanging GBP for JPY. This is…
Wondering how to succeed in NZD/CAD trading? In this article, you’ll find crucial tips and strategies tailored for the NZD CAD pair. We’ll explore key factors affecting its exchange rate, important technical indicators, and effective trading strategies to help you…
The most traded currencies in the world might be a bit more surprising than you imagined. For example, did you know that tiny Norway has 1.7% of the forex turnover, despite having only 0.06% of the world’s population? This is…
AUDUSD is one of the most popular currency pairs for trading in the forex market. Forex is not easy to trade and make money on, but this article provides an example of a trading strategy with trading rules and performance….
Effective AUDJPY trading strategies could be very valuable because of strategy diversification. This article outlines key techniques, risk management practices, and entry and exit pointers you need to trade this volatile pair successfully. We even provide a backtested trading strategy….
In the forex market, the USD/CHF pair, also known as the ‘Swissie’, is one of the most traded currency pairs. This is an accomplishment for such a small country like Switzerland. The currency pair is regarded as a measure of…
Looking for an effective GBP/AUD trading strategy? This article covers actionable strategies and key factors that influence GBP/AUD. Learn various trading approaches and tools designed for the GBP/AUD pair. Key Takeaways Understanding the GBP/AUD Currency Pair The GBP/AUD currency pair…
Trading and investing can be very risky, and it is well known that diversification is one of the most time-tested ways to reduce risks. This is where the Forex basket trading strategy comes in, but what is forex basket trading?…
The euro (EUR) and yen (JPY) are the most traded currencies after the USD. Like the USD, the euro and yen are also held as reserve currencies by different countries. But what is EURJPY in trading? Is it possible to…
We have in a number of Tweets, posts, courses, and articles mentioned that the stock market offers the “lowest-hanging fruit” in trading. The reason is simple: We believe you can develop more robust and profitable trading strategies in stocks than…
If you’re searching for an effective CADJPY trading strategy, look no further. Equip yourself with targeted analytical techniques, entry and exit tactics, and robust risk controls for the CADJPY Forex pair. This article delivers actionable ideas to strengthen your trading…
One of the 8 most popularly traded currencies in the world, the Canadian dollar (aka the loonie) accounts for about 2 percent of all global reserve currencies and is the fifth most-held reserve currency in the world, after the U.S….
If you’re searching for a practical eurusd trading strategy, you’re in the right place. Our guide cuts to the core, offering an examination of EUR/USD’s price action, essential economic reports influencing its volatility, and specific tools like Fibonacci retracement levels…
Are you looking to refine your approach with advanced forex trading strategies or just starting out? This article offers a clear path to understanding and applying a variety of techniques suitable for all levels of experience. From foundational concepts to…
The influence of the Chinese yuan in the global financial markets is growing, and even though China does not float the currency freely like other major currencies, you may want to have a USDCNY trading strategy. How do you add…
If you’re an investor or trader in the forex market or stocks, you’ve likely heard of market makers. These important players are responsible for offering buy and sell prices to other market participants, including investors and institutions. Trading systems and…
Forex trading is a complex field that is hard to succeed in. One strategy that has gained traction in recent years is the Smart Money Concepts (SMC) trading strategy. SMC encompasses a range of techniques and principles that can greatly…
To trade the Forex GBP/USD pair, you need a solid GBP/USD trading strategy due to the currency pair’s volatility and market swings. This guide delivers that by showing you a backtested trading strategy with trading rules. This will hopefully give…
Seeking an AUDCAD forex trading strategy? This guide will provide you with effective trading methods tailored to the AUDCAD currency pair. You’ll discover how commodity prices, interest rates, and other factors impact AUDCAD. We’ll also explore key trading strategies like…
Searching for CAD/CHF strategy trading tips? You’re in the right place. This guide covers live rates, key factors influencing the CAD/CHF pair, recent performance, and effective trading strategies. Whether you’re a beginner or an experienced trader, you’ll find valuable insights…
While there are many currency pairs you can trade in the forex market, a CHFJPY trading strategy would allow you to get the best out of the CHF and JPY markets. If you know how to get it right, the…
Forex trading vs options trading can be a difficult choice. Forex trading has around-the-clock activity and potential for high return, while options trading offers strategic tools and defined risks. In this article, we’ll directly compare the two, helping you understand…
The British pound (GBP) is the oldest currency still in use in the world today. It was first issued as legal money in the year 760 AD. According to the CME Group, the British pound and US dollar are underwritten…
In the forex market, there are many currency pairs you can trade, and the USDCAD trading pair is one of the most actively traded. With the right trading strategy, you can get the best out of this major currency pair….
