Today we will introduce you to a well-known stock market anomaly – the small-cap effect strategy. Small-cap stocks are one of the types/factors you can invest in and hold in your securities portfolio. Small-cap stocks differ from large- and mid-cap…
In the world of finance, Commodities Futures Trading Strategies offer immense opportunities for investors to profit from price fluctuations in various commodities such as oil, gold, wheat, and more. However, to succeed in this dynamic market, it is crucial to…
Spin-offs are a popular corporate action that company management and boards may pursue to unlock value or narrow down their focus. Many famous investors, such as Joel Greenblatt, Seth Klarman, and Charlie Munger, have voiced their support for spin-offs as…
Equal weight and market weight are two different methods to build an index. The S&P 500 is famously a market-weighted index, like most stock indices. But the question that pops up is: Which type of market weighting performs best –…
The Relative Strength Indicator, abbreviated RSI, is probably the most popular trading indicator. It’s mentioned in almost endless posts and articles on the internet. To our knowledge, the standard default setting of 14 days is mostly used. But does the…
Cryptocurrency trading has become increasingly popular in recent years, and Bitcoin, as the pioneer and most widely recognized digital currency, is at the forefront of this seemingly financial revolution. Traders are constantly seeking strategies to capitalize on the volatility of…
Volume indicators in trading are tools used by traders and analysts to assess the trading activity or volume of a financial instrument, such as stocks, commodities, or cryptocurrencies. These indicators help traders gain insights into the strength or weakness of…
The Relative Strength Index indicator is popular, for a reason, but in this article, I backtested the default settings of the RSI indicator, and made it better. Investments and trading is a wonderful world where large companies and small investors…
It costs money to trade, and one of the costs is commissions to your broker. No one works for free, but luckily costs have gone down a lot the last two decades. What is a commission trading, and how important…
As traders, we rely on different analysis tools to gain some insights into what the market might do next; one such tool that is easy to use is the Stoller Average Range Channels (STARC). What do you know about this…
There are several trading tools and indicators available to us day traders but only a few can track market movements and price action like the Schaff Trend Cycle (STC) does. What do you know about this indicator? The Schaff Trend…
What is the best swing trading strategy? Is swing trading still profitable with positive returns? We have summarized 10 free swing trading strategies that might help you start your trading career. The internet is flooded with anecdotal evidence about how…
The 4th of July (Independence Day) is one of the federal holidays in the US. How does it affect the US financial markets? The US financial markets do not open on the 4th of July, being a federal holiday to…
The Russell 2000 Rebalancing Trading Strategy is a method that takes advantage of the abnormal outperformance of the Russell 2000 index during its annual rebalancing at the end of June. Traders buy on the close of the first trading day…
Why trade the Euro Stoxx 50? The Euro Stoxx 50 is one of the world’s most popular equity indexes to trade. Because of its popularity, a new Mini futures contract has seen the day of light to make it more…
Double exponential moving average strategy backtest Traders are always looking for an edge in the market. While some employ the use of chart patterns, others simply trade based on indicators. An example of such an indicator is the double exponential…
Making wise investment decisions in today’s erratic financial market may depend on your ability to recognize the signals of a potential market reversal. The phrase “Reversal Day” refers to a day when a stock or market index changes direction, either…
Did you know that closed-end funds (CEFs), a category of investment instrument, have existed for more than a century? Because of its long history, closed-end funds are a popular investing vehicle. But did you know that you can also make…
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…
Let’s take a look at the semiconductor industry and an SMH Trading Strategy. The semiconductor industry is the backbone of the tech revolution of the past decades and stocks in the industry dominate the IT sector of the S&P 500….
These 10 different crude oil trading strategies can help you make money. This article provides methods for timing trades, incorporating market data, and managing risk. Learn about crude oil trading with confidence and set another successful example for others. Crude…
Since its birth in the 1980s, derivatives trading has opened up a world of markets for traders who want to profit from the price movements of various derivatives. To succeed in this market, you must have a derivatives trading strategy….
You may have seen the Gann Fan in your trading platform and be wondering how to use the tool for trading. Well, you are not alone; many want to know the Gann fan trading strategy. The Gann fan trading strategy…
If you have been trading or just following the gold and silver markets, you must have heard about the gold-silver ratio. What does the gold-silver chart ratio strategy mean? The gold-silver chart ratio strategy is a technique for trading the…
Intraday trading is one of the most exciting but, at the same time, the most demanding form of online stock trading, and the OHL trading strategy helps you focus on the most important aspects of the trading day. As a…
Agriculture futures offer a vast array of hedging and speculative opportunities, and Corn is one of the most highly traded commodities globally. Also known as maize, corn is widely cultivated in countless varieties throughout the world. Corn futures trading requires…
A Dow Jones futures strategy is what to use to trade the DJIA futures market. DJIA futures refer to financial derivative products that represent a contract to buy or sell a specified amount of the Dow Jones Index on a…
A commodity trading advisor (CTA) is an individual or organization that provides personalized advice and services related to trading in futures contracts, commodity options, and retail off-exchange forex contracts or swaps. It could also be a fund that uses a…
One of the most frequently traded futures contracts, the E-mini S&P 500 futures tracks the popular S&P 500 index, which is an index of the 500 biggest stocks in the US stock market. Just as the S&P 500 index is…
This article compares price action trading with indicator-based trading, exploring the differences between the two approaches. It highlights the importance of understanding price movements and using technical indicators effectively. By analyzing the pros and cons of each approach, traders can…
An index rebalance trading strategy is a trading strategy that seeks to exploit the price movements of stocks that are being added to or removed from a major market index. Index funds, which are passively managed funds that track a…
A Market structure trading strategy involves analyzing and interpreting various elements that shape price movements, such as swing highs and lows, support and resistance levels, and trendlines. Many traders use market structures to pinpoint lows and highs. In this article,…
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? This…
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 kinds of stocks are within the industrial sector and how you can trade them. Unfortunately,…
What is an Order Block? An order block is a term used in trading to describe a specific price area on a chart where significant buying or selling activity has occurred. It represents a consolidation of orders, creating a temporary…
Below is a simple and easy trading strategy to implement in QQQ. Let’s go straight to the trading rules: Trading Rules The equity curve since January 2000 looks like this (starting with 100 000 in equity and allocating 100% of…
Sell the rip refers to a trading strategy that aims to sell an asset (either closing an open long position or opening a short position) when its price has risen to a level considered overvalued. This investment approach follows the…
Since 1993, all the gains in the S&P 500 have come from owning the index from the close to the open the next day. We see the same tendency in the gold markets. Thus, we can develop night trading strategies…
An unfilled gap trading strategy happens when all the price action today is either lower than yesterday’s low (gap down) or higher than yesterday’s high (gap up). They are also profitable if we base our buy signals on additional criteria….
McGinley Dynamic Indicator strategy backtest Different types of moving averages are used in technical analysis. However, the McGinley Dynamic indicator stands out for its attempt to solve a problem inherent in moving averages that use fixed time lengths. It’s a…
Geometric moving average strategy backtest There are different ways of getting the moving average of a time series. While the simple and exponential methods of calculating the moving average are more common in the trading world, it is also possible…
Guppy multiple moving average strategy backtest Trend traders are always looking for trading opportunities by analyzing the price chart. This includes spotting a trend early as well as knowing when a reversal is about to occur. Interestingly, the Guppy Multiple…
What is the The Magnificent Seven? The Magnificent Seven stocks are a group of seven large technology-focused companies that have been among the top performers in the stock market in recent years. The Magnificent Seven are the following stocks: These…
You are going to learn everything about grid trading strategies here. For those looking to harness the natural ups and downs of market prices through a methodical, hands-off methodology, look no further than grid trading strategies. This complete guide is…
The 13/48 trading strategy is a technical analysis method that uses moving averages to identify potential trading opportunities. The strategy is based on the idea that when the 13-period exponential moving average (EMA) crosses above the 48-period EMA, it is…
Precious metal trading strategies hinge on understanding market trends and leveraging diverse tactics. This guide empowers you with the strategies you need for trading gold, silver, platinum, and palladium, helping you create a resilient approach in a fluctuating market. Here,…
There are different ways to skin a cat, they say. But in trading, especially short-term trading, one method might stand a shoulder above all, and that is the multiple timeframe analysis. What is the multiple timeframe strategy? The multiple timeframe…
You are going to learn the best silver trading strategies for 2024 here. This article gives you the key tactics you need, from leveraging silver’s market trends to implementing tight risk controls. Step into the field of silver trading with…
Also known as investor attention or crowd psychology, market sentiment indicators refer to the prevailing attitude of investors as regards expected price development in a market. It is the feeling or tone of a market, as revealed through the activity and…
The Relative Strength Index (RSI) is among the common and most powerful technical indicators widely used by professional traders and investors when analyzing financial markets. This index has been used by traders to make crucial decisions since it was initiated…
(Peel Off Trading Strategies) Many traders focus on creating the best entry strategies and don’t give much thought to their exit methods. There are many ways to exit a trade, but one strategy used by most traders is the “peel…
IPOs are one of the most frequent corporate events in the market. They get a lot of press coverage, and it is not unusual to see large pops on the first day of trading. But the question is: how do…
Today, we present a new strategy bundle that contains three 24-hour day trading strategies. What is a 24-hour day trading strategy? That is a strategy that buys at the close and holds the position for 24 hours until the next…
Merger arbitrage is a specialized trading strategy that seeks to capitalize on price differentials between a target company’s stock price and the offer price during a merger or acquisition. This strategy involves taking advantage of market inefficiencies created by the…
The Copper/Gold ratio trading strategy seems to offer good entry points for both copper and gold. We backtest the ratio and find positive results for the next one to 12 months after a signal is triggered. Copper and gold are…
What are the Key Drivers of NVDA’s Stock Price? NVIDIA Corporation (NVDA) is a major player in the graphics processing unit (GPU) market, and several key factors drive its stock price: How Does the Semiconductor Industry’s Cycle Affect NVDA Trading?…
Today, we show you the performance data of a quarterly trading strategy that boasts substantially better risk-adjusted returns than buy and hold: Buy and hold returns 7.2%, while our quarterly trading strategy compounds at 9.8% if we adjust for much…
In the US, hard-to-borrow stocks underperform over 3-, 6-, and 12-month periods. Moreover, hard-to-borrow stocks consistently underperform those that are not hard to borrow. Is that negative edge big enough to make a hard to borrow stocks trading strategy? Verdad…
14 agricultural commodities trading strategies will guide you in handling profits in uncertainty. How do you understand market trends and manipulate risk in your favor? This no-nonsense guide teaches you straight into the strategies for commodities such as corn, wheat,…
Today we will look at another trend following strategy developed by a famous fund manager long ago. It’s called Fabian Timing Model and was developed by Richard Fabian in the 1960s. The Fabian timing model is a simple quantitative long-term trend…
Today we will look at a strategy that saw the day of light nearly 60 years ago. The somewhat cryptic name is the Coppock Curve. What is the Coppock Curve strategy about? The Coppock Curve Strategy was devised by economist…
Traders always want to have a Holy Grail trading strategy or indicator that can allow them to make all the money in the shortest possible time. While such indicators do not exist, the ADX and RSI are among the best…
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…
As Warren Buffett rightly said: “You need to be fearful when others are greedy, and greedy when others are fearful.” This perfectly applies to the Rubber Band trading strategy, but what is it? The Rubber Band trading strategy is a…
Some active traders like to trade daily, opening and closing their trades within the trading day. This manner of trading requires having a daily trading strategy. The daily trading strategy is a method of trading where a trader buys and…
The name may sound freaky, but it is a common strategy used by traders in different markets. You may be wondering what death cross and double death cross mean. The double death cross strategy is a modified death cross where…
An essential part of technical analysis is studying the chart patterns, and one common chart formation is the 123-reversal setup, which appears at the beginning of many price reversals. But what is the 123 pattern reversal strategy? The 123 reversal…
An Over-The-Counter (OTC) trading strategy involves trading financial instruments directly between two parties without the use of a centralized exchange. OTC trades occur in decentralized markets, often through dealer networks, enabling flexibility with customized contracts and conditions. Commonly used for…
There are different approaches to trading. While some want to get in and out of the market within the same day, there are those who want to leave their trades on for as long as possible to milk all the…
FOMC meetings can have a significant impact on financial markets as decisions on interest rates made during these meetings can influence the direction of monetary policy and market expectations. Many traders look forward to them and trade the immediate volatility…
As with FOMC meetings, ECB meetings can have a significant impact on financial markets, especially forex and European stock markets. Decisions on interest rates made during these meetings can influence the direction of the EU’s monetary policy and market expectations….
Japan is the third largest economy in the world. It is a major player in the global financial markets, with a well-developed system of stock exchanges and a large securities industry. Day trading and swing trading thrive in Japan, so…
ChatGPT trading strategies are strategies generated with the help of the ChatGPT AI that is currently taking the world by storm. The AI can help you create technical indicators, AI trading strategies based on specified indicators, and even trading algos,…
What are options trading in META? Options trading is an investment strategy where investors purchase contracts to buy or sell a specific asset at a predetermined price on or before a specified date. Investors use options to speculate on future…
Stock trading in Apple’s stock AAPL is a popular investment strategy that involves buying and selling shares of publicly traded companies with the aim of generating profits. One of the most well-known and widely traded stocks is Apple Inc. (AAPL),…
Today we test Larry Connors‘ R3 strategy and we continue backtesting the trading strategies Larry Connors and his team published in 2009 in a book called High Probability ETF Trading. All the strategies were tested on a basket of 20…
We have previously published an article on using RSI on SPY (relative strength index). The RSI has proven to be a valuable indicator/tool for mean reversion in the main stock indices. Today we present an RSI trading strategy. In this…
How and when should you exit a trade? Most articles about trading center around when to buy (or sell short) or how to deal with the psychological aspects. Hardly anything can be found about exits, even though when to exit…
You are going to learn the top gold trading strategies 2024 with 10 different types (Backtests) here. Without massive detail, we provide a peek into effective techniques, their alignment with market analysis, and tips on risk relief. Its practical knowledge…
The VIX and VXO are frequently used to time entry and exits in the S&P 500 and Nasdaq. In this article, we present you with a trading strategy that has beaten the S&P 500 despite being invested only 22% of…
Chapter 6 of Larry Connors‘ High Probability Trading contains a trading strategy called Multiple Days Up (MDU) And Multiple Days Down (MDD). The book was published in 2009, the trading tests were done until 31st of December 2008, and it’s…
The closest thing to a holy grail in trading is diversification. There is no holy grail trading strategy or strategies, but consistency can be achieved via non-correlated strategies. This is not a simple process but requires hard work plus delayed…
We have presented many XLP trading strategies over the years, and this is for a reason. The headline of this article, is XLP good for trading, deserves a big “yes”. This article argues that XLP (consumer staples) is an underappreciated…
A Pair Trade in SPY And TLT (Pairs Trading Strategies). A few days ago, we witnessed major moves in both long-term Treasuries (TLT) and the S&P 500 (SPY). That is not abnormal: when the going gets tough in stocks, many…
Gap trading strategies have been a popular tool for many decades. Gaps vary in size, variations, and volume depending on the asset you are looking at. Gaps can be traded in any instrument, and certain asset classes have substantial daily…
An inside day is defined by two bars where the last bar has all price action below yesterday’s high and above yesterday’s low. In other words, today’s price action and trading are completely inside yesterday’s. Our backtests indicate that an…
It’s possible to make a Friday Jobs Report trading strategy. One of this planet’s most important macro numbers is the monthly US job report. The employment report sets the bond traders on fire and, subsequently, the stock market because the…
The NR7 trading strategy is a narrow-range strategy that is both well-known and popular. If you do a search on the internet, you get multiple hits on the strategy. To our knowledge, the strategy was first developed by Tony Crabel…
