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…
TLT vs SPY – Bond Rotation Strategy. Some days ago we published an ETF rotation strategy that rotates between SPY, TLT, and EEM based on monthly momentum. Today we look at a similar ETF sector momentum/rotation strategy but we exclude…
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…
When it comes to price action trading, recognizing chart patterns on the chart may be the most important skill. While there are many chart patterns, the wedge pattern is one of the most reliable. Want to know about wedge trading…
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…
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…
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…
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…
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…
You are going to learn about Bollinger Bands trading strategies with backtests 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….
Some stocks, and indeed some stock market sectors, are known for their relatively stable prices and little intraday fluctuations. Some traders and investors prefer such stocks, as they make use of low volatility stocks strategy. Want to know more about…
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…
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…
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…
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…
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…
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…
If you want to know how the cost of living is changing, the CPI is one tool to check. Government agencies, businesses, investors, and traders use it to gauge inflation — the change in the prices of goods and services….
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…
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,…
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…
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…
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…
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…
The first day of the month seasonality is strong in most markets. We have previously written about the turn of the month trading strategy, but today we look at the first trading day of the month. The turn of the…
While the movements of the financial markets seem very random and chaotic, they might actually follow a certain pattern if you can find it, and that is where the Fractal Chaos Bands come in. What do you know about this…
The Bollinger Bands is a very popular indicator for performing different kinds of market analysis, but when it comes to extracting information about price volatility, it’s the domain of its offspring, the Bollinger Bands Width. What do you know about…
The proportion of adult Internet users who use social media platforms is approaching 75%, and this figure is growing. A good number of these social media users participate in the financial markets and use Twitter to disseminate their interest in…
Micro E-mini Dow futures strategy refers to the techniques or methods that you can use to trade the micro E-mini Dow futures profitably. Micro E-mini futures are 1/10th the size of their E-mini counterparts. They can be traded electronically on…
Consumer confidence Index tries to gauge the temperature of the economy. It swings from pessimism to optimism – just like Mr. Market who is rather manic-depressive. In the US it’s made by the Conference board and it casts doom and…
You might stumble upon supposedly quantitative trading strategies based only on anecdotal evidence in the vast ocean of online resources. However, untested methods and strategies offer little more than hollow promises. We believe in providing examples of strategies that have…
Moving average slope strategy backtest Finding good signals in the random chaos called the financial market is not an easy job and as such, one has to seek out every possible way to analyze the markets. In the search for…
Extracted from sugarcane and sugar beet plants, sugar is a soluble and sweet-tasting carbohydrate used to sweeten food products. Sugar futures are actively traded on commodity exchanges, such as CME and ICE. You can use sugar futures contracts to speculate…
Warren Buffett has publicly (and frequently) written about what he considers the folly of investing in gold: Gold doesn’t produce any tangible values – neither products nor services. This article argues why Buffet is right about gold. However, are gold…
Statistical arbitrage trading strategy involves buying and selling the same or similar asset in different markets to take advantage of price differences. Thus, arbitrage trading strategies are methods you can use to exploit arbitrage opportunities in any market. This may…
You might have saved up some money and decided to invest. You already know what you want to invest in, but now you have another decision: When should you invest? If you research the subject, you will likely come across…
The US government bond market provides the most liquidity, security (in terms of creditworthiness), and diversity in the bond market. The 10-year T-Note futures is not just one of the ways to invest in the Treasury debt market but also…
One of the most known factors in investing is momentum. Momentum states that an asset that has been going up is more likely to keep going up in the future than to fall. It has been widely researched by academia…
This article looks at how likely you are to go broke as retired or FIRE. Low interest rates make many pensioners and those who retire early (FIRE) allocate more and more capital to risky stocks. Many tend to forget that…
Detrended Price Oscillator (DPO) is a technical analysis indicator. According to the author’s idea, the indicator is built without considering trend movements on the chart, which allows a more accurate determination of overbought and oversold levels. Similar to a moving…
DAX trading strategies refer to various approaches and techniques used by traders and investors to make trading decisions in the context of the DAX index. The DAX (Deutscher Aktienindex) is a stock market index that represents the 30 largest and…
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…
TikTok is a popular social media platform known for short videos, but it has also become a hub for trading advice and TikTok Trading Strategies. Many traders share their trading strategies and playlist on TikTok, and some have even become…
Gold has a rich history dating back thousands of years, admired for its beauty and rarity. It has been used for currency, jewelry, and ornamental purposes across civilizations. But more recently, it has been widely used for speculating in the…
A leverage trading strategy is a trading strategy that makes use of leverage for the execution of its trades. Financial leverage is the possibility of opening market positions using only a part of the necessary capital. “Give me a lever…
Larry Connors is a well-known figure in the world of trading and finance, and he has developed several trading strategies over the years. Larry Connors is a well-known figure in the world of trading and finance. He is an author,…
Linear-weighted moving average strategy backtest Moving averages are a technical analysis tool that smooths price data over a specific period. They come in different types, and each type has its advantages and limitations. The linear-weighted moving average is one of…
Junk bonds are probably an asset class that very few traders are involved in. Junk bonds tend to correlate with the stock market, but junk bonds seem to trend more than stocks, which opens possibilities to make uncorrelated junk bond…
The fourth quarter is a strong period for stocks. But which five-day period is best? We did a test to find out which calendar days of which month produce the best five-day returns. The best five-day periods to own stocks…
The Friday seasonality in crude oil trading revolves around a straightforward principle: purchasing oil assets on Thursdays, anticipating a price increase on Fridays. However, the efficacy of this strategy isn’t uniform across all Thursdays. Research indicates that it yields more…
A well-known “fact” is the end-of-month rally in stocks at the end of the month and the first day(s) of the next month. It’s a lot about it on the web, but as far as I can see no actual…
Just like we can develop seasonal trading strategies in the overall stock market, we can find potentially profitable seasonal trading strategies in the retail sector. This article presents one such opportunity. Are there any seasonalities in retail stocks? Some years…
Is there a distinct trend in the U.S. stock market’s returns during the closing days of calendar quarters? Do investment funds strategically allocate cash to drive up stock prices to enhance portfolio values in quarterly reports? Is there a unique…
In the United States, a presidential election is held every four years. Those presidential elections have been observed to affect many government sectors, including legislation, international relations, and even the stock market. This occurrence inspired the concept of 4-year presidential…
Are there any monthly seasonalities in TLT? Yes, just like in stocks there are some strong and weak months. August is, by far, the best month. We are now entering the best month over the last 20 years in long-term…
The Labor Day holiday is one of the federal holidays observed in the US. But does it affect the US financial markets? The US financial markets do not open on the Labor Day holiday, which is the first Monday in…
The Memorial Day holiday is one of the federal holidays in the US. How does it affect trading in the US financial markets? The US financial markets do not open on Memorial Day because it is a federal holiday. Trading…
20+ treasury bonds (TLT) show a significantly different performance depending on the day of the week. Is there any day of the week effect in TLT? Let’s test some day of the week strategies. Assume we start with an account…
SPY seasonality trading can be very profitable if done correctly. We like SPY seasonality and have made plenty of SPY seasonality trading. In this article, we look at several SPY seasonality patterns. But first, what is a SPY seasonality? What…
What is the worst month of the year for stocks? Let’s look at the statistics for the last 50 years and find out. It turns out the historical performance of the months varies a lot. Some months are better than…
The Congressional Effect in stocks– we suspect you have never heard of it. Neither had we! But this is one of the many seasonal effects in the stock market. The man behind the effect, hedge fund manager Eric Singer, had…
The even vs. odd days trading strategy shows that most of the gains in the S&P 500 come on even days, not on odd days. It’s a rather peculiar effect but most likely the result of chance. Can we develop…
The day of the week seasonality effect in stocks is strong. Some days are simply better than others. Previously there has been a certain day-of-week seasonality in the S&P 500. Here is a summary of the average gain since 1….
The Holiday effect system in the stock market is a well-known anomaly and seasonality. Is there a way to profit from the holiday effect seasonality? Are there any holiday effects in the stock markets? If so, which holiday is the…
Below you can find the gain each year from 1997 until 2011 in OBX. It’s divided into two: The whole of December and the 2nd half of December. The 2nd half is from the close of the 15th or the…
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,…
When the weekday markets close, weekend trading springs to life, offering distinct opportunities for those ready to tackle its unique challenges. Our guide demystifies the weekend trading strategy, detailing concrete measures to handle the peculiarities of trading cryptocurrencies, commodities, and…
We did a backtest where we optimized the month and calendar day to find the best calendar days for the S&P 500. We backtested the result by entering at the close of calendar day N and selling at the close…
The Euro Bund futures contract shows weak seasonal performance during the futures expiration week. The contract has ticker code FGBL, is issued by Germany, has a maturity between 8.5 and 10.5 years, and one contract has a value of 100…
Backtests and statistics of five different futures contracts reveal that most of the price action is random throughout the trading day. However, by implementing one or two extra variables, we find some potential trading edges or strategies. Let’s go straight…
Day of the week effect In trading. The weekday effect in trading can be a handy trading edge because trading is about exploiting small trading edges in the market. If you work hard and diversify with different markets, time frames,…
Bitcoin is traded 24/7 and there exists a few seasonal patterns. For example, being invested from 5 PM to 7 PM any day has paid off well, and so has being invested on certain days. Let’s look at a Bitcoin…
The Euro Stoxx 50 has mixed performance the week after futures expiration. Euro Stoxx 50 is a very popular trading vehicle. It’s one of the most traded futures contracts in the world. The contracts expire on the third Friday of…
The Best 6 Months Timing Model strategy by Yale Hirsch is an active and simple strategy that uses market timings and can be implemented using any asset class and portfolio. Using this strategy, you do not need to be in…
What are the best days to trade stocks? The best days to trade stocks are Tuesdays, the first days of a month, the last days of a month, and the end of the year (4th quarter). Becoming a proficient trader…
Yes, our backtests indicate that there is an end of month effect in Bitcoin and this can potentially be a viable turn of the month trading strategy. The end of month effect, sometimes referred to as the turn of the…
Rosh Hashanah in commonly known as the Jewish New Year. This, of course, means a lot for Jewish people, who celebrate it during a three-day holiday. But during that timeframe, the market is generally open. Can we make a profitable…
Our backtests suggest that NIFTY 50 has a positive end of month effect. A variation of the inputs does not change the result dramatically, thus the end of month effect seems reasonably robust. The end of month effect is well…
Calendar effects are pretty well known in the stock market, but it’s not many articles out there about calendar effects in long-term Treasuries (TLT). TLT seasonal trading strategies are hard to come by on the internet, but below you get…
New Year’s Eve is often a time for optimism and celebration. Does this spill over to the stock market? Is there a New Year’s eve effect in stocks? There is no particular seasonal New Year’s Eve effect in stocks, but…
Trading Strategies for Futures Expiration Week. Our backtests indicate that both DAX 40 and Euro Stoxx 50 have much better performance during the futures expiration week compared to any other random week. Let’s start with the DAX 40 contract: DAX…
Can we find the same Santa Claus Rally in NIFTY as we do in the US? We are approaching perhaps the strongest two/three weeks of the year: the Santa Claus Rally or the end of the year effect. We have…
