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 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…
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…
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…
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…
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…
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…
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…
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…
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…
(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…
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…
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…
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…
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,…
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…
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,…
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…
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…
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…
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….
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…
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…
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…
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…
Earnings season and Earnings Trading Strategies can be a great time to get insight into different stocks, as well as take advantage of the short-term volatility that follows the release of earnings reports. Experienced traders look forward to the earnings…
A trend reversal is a change in the direction of the price trend of an asset. This change in direction can be to the upside or downside. The trend reversal strategy is any analysis or trading technique a trader uses…
Most traders tend to focus on the daily and intraday charts. Only a few get to look at the weekly chart, let alone trade from them. But the weekly chart may provide more consistent setups that are easier to trade…
It feels great to make money in a bear market. It’s not about schadenfreude, but more about mastering the markets. So, how do you go about making money in a bear market? In this article, we indicate how to make…
Once used as a form of currency in Central and South America before the Spanish conquest, cocoa is now used to produce chocolate and some of the most popular beverages in the world. Cocoa belongs to the soft commodity category,…
Heating oil is a low-viscosity liquid produced from refining crude oil, which is used almost exclusively for heating residential and commercial buildings. The demand for heating oil rises as the temperature drops during the winter, which makes it a highly…
An E-mini Russell 2000 Index futures strategy is the methodology or technique you can use to profitably trade Russell 2000 Index futures, and this often includes technical and fundamental analyses for market timing and risk management. E-mini Russell 2000 Index…
With the emergence of personal computers and online trading via electronic communication networks (ECNs), you may think of tape reading as something ancient. While the term brings up memories of trading legends like Jesse Livermore, it is worth noting that,…
There are different methods of auctions for buying and selling goods, including financial securities. Not all of them help in transparent price discovery. But many praise the efficiency of the Dutch auction method. Want to know about this Dutch auction…
If you trade stocks or any other financial market, you will often be confronted with that temptation: to buy more when the price goes lower. On the one part, you may have a cheaper entry price, but on the other…
As the world has become more connected online and many regions are opening up their financial markets to the global investing community, diversifying your investment portfolio into other economies has never been easier. The Australian market is a simple choice…
With the world getting increasingly connected online, it is now easier to diversify your investment portfolio into other economies. Asia is home to tens of thousands of investment opportunities; you can choose to invest in anything from safe large-cap stocks…
To many, trading stocks is all about making a single buy of a stock, waiting for it to reach your profit target, and exiting your trade. While that is an effective way to trade, you may be able to make…
If you have been following the stock markets around the world, you would be conversant with stock market indexes, such as the S&P 500, DOW 30, NIKKEI 225, DAX 30, STOXX 40, CAC 40, and FTSE 100. Ever wondered about…
The Renko trading strategy is a type of charting that is built to show a specified range of price movements rather than time-based price movements like most chart types. It looks like a series of bricks, with each block positioned…
When it comes to trade entry and exit, most traders tend to think in singular terms — one shot in and one shot out. But breaking the position size into multiple smaller trade sizes and scaling in gradually may offer…
Hard Red Winter Wheat trading strategy refers to the methodologies and techniques you can use to trade Hard Red Winter Wheat futures contracts profitably. Hard Red Winter (HRW) wheat futures are contracts to receive or deliver the specified quantity of…
With more retail traders picking interest in futures trading, the CME Group decided to launch micro e-mini futures to make futures accessible to more retail traders with low capital. Those contracts are the smaller versions of the popular e-mini futures…
While Germany is by far the largest economy by GDP in Europe, several of its financial markets are actually smaller than those of neighbors France and the UK. However, Frankfurt, the financial capital of Germany, is a top trading center…
With a GDP of about 2.8 trillion dollars, France is the world’s fifth-largest economy and the second-largest economy in Europe, after Germany. It is home to the headquarters of the biggest stock exchange in Europe, so when it comes to financial…
Leveraged ETF trading strategy refers to a short-term investment method that involves trading leveraged ETFs — exchange-traded funds that use financial derivatives and debt to amplify the returns of an underlying index. There are hundreds of leveraged ETFs across different…
A deflation trading strategy refers to the methods and techniques you can use to invest and make money during a period of deflation. This includes how to spot the asset to trade, the direction to trade, and how to spread…
The conventional commission-based trading approach might reduce your profits and make it challenging to meet your investment goals. What is the typical Robinhood trading strategies among their customers? A Robinhood trading strategy refers to the strategies of clients of the brokerage….
While you might not have known it by its name, you would have fallen victim to the bear trap, especially if you love “calling the top” of a reversal trade. Have you ever tried entering a short trade thinking the…
In this article, we will look at one of these traps; why does it happen? Who is responsible for them? Why does it concern you, and can you outsmart it? We show you how you can profit from a bull…
U.S. Dollar Index futures offer an easy way to trade the U.S. Dollar Index (USDX or DXY), which is a measure of the value of the US dollar relative to a basket of the currencies of U.S. most important trade…
While many traders prefer to trade using technical indicators like RSI and MACD, others love to study a naked price chart and make their trading decisions based on price action. One concept that improves the analysis of price action is…
Platinum futures offer an easy way to gain exposure to the platinum market. Known for its use in jewelry and decorations, platinum is a rare and expensive metal that has found diverse uses in recent times. Apart from its use…
There’s more than meets the eye in the financial markets, and there are meetings and markets where securities are being exchanged away from the public eye. The concept of dark pools trading is one of those. But sadly, it’s rarely…
The yield of Treasury bonds is often used as a signal for the growth prospects of the US economy. An inverted yield curve signifies a change in investors’ risk appetite. With a yield inversion strategy, traders use Treasury futures to…
With the S&P 500 index rising significantly over the years, the worth of the popular E-mini S&P 500 futures became out of reach to retail traders with small accounts. This prompted CME to create the Micro E-mini S&P 500 index…
Lumber is a key material for house construction, and lumber futures is the main method of trading this commodity. Used by builders, furniture makers, kitchen cabinet makers, and so on, lumber currently contributes more than $600 billion to the global…
A Korean KOSPI 200 futures strategy is the methodology or technique you can use to profitably trade the Korean KOSPI 200 futures market. KOSPI 200 futures refer to financial derivative products that represent a contract to buy or sell a…
Discovered in 1803 by an English chemist, William Hyde Wollaston, palladium has become a very important component of catalytic converters in automobiles. Palladium futures are the easiest and cheapest way to trade in the palladium market. But to trade successfully,…
Among retail traders, only a few can afford a well-funded account with up to $50,000-100,000 in trading capital. Most retail traders have to find a way to trade and grow their relatively small accounts. Trading stocks with a small account…
Although not a well-known trading chart pattern, the measured move pattern can tune up your understanding of the price chart and improve your analysis if you know how to spot the pattern. What is this pattern, and how do you…
The homebuilder industry has changed a lot in recent years, with large builders that are listed on the stock market increasing their share of the market. Want to know about the homebuilder industry? The home building industry is made up…
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…
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…
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…
In chapter 5 of Larry Connors‘ book High Probability Trading, published in 2009, there is a trading strategy called %b strategy. The book contains many strategies which we test in chronological order. 12 years have passed since the book was…
You are going to learn about Bollinger Bands trading strategies with bachtests and performance in this article. This guide explains how to use Bollinger Bands for strong market entry and exit frames, exploiting periods of market calm and volatility alike….
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…
Interested in optimizing your market timing and trend identification with moving average trading strategies? This comprehensive guide delves into the intricacies of utilizing fundamental moving averages such as the SMA and EMA. Explore techniques for refining entry and exit points,…
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…
There are many patterns that occur in the financial markets, and smart traders who can identify them use them to their advantage. This is the case with the stairs, which are commonly seen patterns on price charts. But what is…
Volume trading strategy is a trading method that involves analyzing the volume of shares or contracts that are being traded in a particular stock or market. The idea behind this strategy is that high trading volume can indicate strong buying…
Many traders often think that mean-reversion strategies are only meant for range-bound markets. But that’s not the case, as there are strategies that can be traded in a trending market. A good example is the TPS trading strategy. What is…
As with the S&P 500 index, gold also shows an overnight bias — the tendency for the gains to accrue during the night. As such, night trading and overnight trading strategies in gold or the gold miners ETF can be…
The Piotroski F-Score strategy, developed by Joseph Piotroski, has gained widespread popularity among stock market investors. Many investors claim to use it for selecting stocks. You may have heard about the Piotroski F-Score, but do you know what it means…
Investors have a variety of options when it comes to investing strategies — Bond vs. Equity, Passive vs. Active, and Value vs. Growth strategy. Here, we focus on the two most popular strategies — Growth Investing and Value Investing. The…
An inverse ETF trading strategy is a trading method that seeks to profit from declining market conditions by buying inverse ETFs — exchange-traded funds that are designed to move in the opposite direction of the underlying index. The best inverse…
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…
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…
Every investment comes with the risk of loss, but it is possible to limit such risks using hedging strategies. Hedging trading strategies are valuable tools that every investor should be aware of, but what exactly are hedging trading strategies? In…
Day traders always look for ways to identify key intraday support and resistance levels. This is where the Camarilla pivot points come in. But what is the Camarilla pivot point trading strategy? Introduced in 1989 by Nick Scott, a successful…
The advent of the internet saw the rise of many online publications, some of which focus on business and finances. One of the early entrants in the online financial education business is Investopedia, but what does it actually offer? Founded…
As a trader or investor, you want to know the best ways to pick winning stocks, the most advantageous times to buy them, and the most effective risk management techniques to use. This is where the Wyckoff trading strategy comes…
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 such event is the short squeeze. A short squeeze happens when there…
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…
This short-selling strategy bundle consists of three short strategies. They have only been backtested on the ETF mentioned below. Entries are on the close or the next open (and the same for exits). Read here for how to trade at…
Looking for ways to use TradeStation more effectively? This article covers essential TradeStation trading strategies you can use to improve your trading. Discover how beginners and advanced traders alike can leverage tools like RadarScreen® and EasyLanguage® to create profitable strategies….
Moving averages are one of the most useful technical indicators. This is because they are simple and flexible while offering useful information about the trend, as well as support and resistance zones. There are many types of moving average indicators,…
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…
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…
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…
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…
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…
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…
