This article presents the 7 best algo trading strategies for beginners. This is meant as a jump-start for anyone looking to move away from subjective opinions and toward data-driven trading. Before diving in, it’s important to understand the key concepts…
In Chapter 6 of Larry Connors’ High Probability Trading, there is a trading strategy called Multiple Days Up (MDU) and Multiple Days Down (MDD). The books by Larry Connors, including High Probability Trading, are considered key resources for traders interested…
Is a stop loss good or bad? What is the best stop-loss trading strategy? Are there alternatives to a stop-loss? How many different stop loss strategies are there? One mantra is repeated when you read books and blogs about trading:…
Whether candlestick patterns actually work depends heavily on how you define your entry and exit rules, as academic research shows mixed results ranging from no added value to statistically significant predictive power. While some candlestick patterns show a measurable historical…
The Short Interest Strategies. Is high short interest good or bad? Short interest in trading has been a hot topic during 2021 after Gamestop made short-sellers run for cover at prices many times higher than their entry price. But was…
This article presents an ETF rotation strategy. Sector rotation is popular, and this is not without merit. The idea is to be in the sector that shows the best recent momentum. Today we present an ETF momentum rotation trading strategy…
There are different ways to skin a cat, they say; but in trading, especially short-term trading, a Multi-Timeframe Analysis trading strategy might stand a shoulder above all. This method is widely used in financial markets to identify market trends and…
Williams %R was developed by the famous trader and tax rebellion Larry Williams, who has given names to several technical indicators. Last week we wrote about the WilliamsVixFix indicator, and today we are explaining the Williams %R trading strategy and…
When a stock is 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…
With trading strategies, there are many different ways to trade and as many different types of trading strategies. It’s important to remember that what works well for one person might not yield the same results for you. Conducting thorough data analysis and data-driven backtesting,…
Are you looking to make profits from day trading strategies but feeling overwhelmed by the numerous strategies out there? You’re not alone. Day trading can be a complex and high-risk endeavor, requiring a blend of knowledge, discipline, and timely execution….
Bond trading strategies are a great inclusion in a portfolio of strategies because they offer diversification and, most likely, uncorrelated returns. Bonds are complementary. First, you might want to have a look at other articles related to bond trading strategies:…
We call the strategy an intraday momentum trading strategy. This is a type of short term trading strategy that seeks to capitalize on rapid intraday price movements in trading assets such as the S&P 500 ETF. By focusing on intraday…
In this article, we present you a Gold Momentum Trading Strategy, originally based on research by Cyril Dujava of Quantpedia, suggests that gold performs significantly better when its momentum aligns with that of other asset classes – specifically US Treasuries….
Golden Cross Trading Strategy is famous and a cited phenomenon in the media. In this article, we look at the performance of the Golden Cross in the S&P 500. A Golden Cross involves two moving averages – one short and…
When bonds go down and interest rates go up stocks perform poorly. A lower price for the bond means that the yield and interest rates go up, and future cash flows get discounted at a higher rate. When rates go…
The Triple RSI trading strategy is a modified version of the RSI strategy with four key variables, three of which are based on the RSI. It focuses on mean reversion, and the trading rules involve conditions related to RSI readings,…
Algorithmic trading strategies today emphasize robust backtesting, strict rule definition, and parameter stability rather than curve-fit optimization. Modern systems combine mean reversion, momentum, and volatility filters to adapt to fragmented liquidity and faster execution environments. Reliable strategies define precise entry…
The 200-day moving average trading strategy is frequently used as an indicator in the financial markets. Who hasn’t heard about the “Death Cross”, “support at the moving averages”, “the trend is positive because the price is above the averages”, etc.? …
The overnight trading strategy in the S&P 500 involves entering a trade at the market’s close and exiting it at the following day’s open. Overnight trading refers to buying and selling financial instruments outside of the standard market hours. For…
Random Walk Theory Trading Strategy means stock prices move randomly and can’t be predicted — like flipping a coin. Popularized by Burton Malkiel in A Random Walk Down Wall Street, the idea suggests that trying to time the market is…
The NR7 trading strategy is a narrow-range strategy that is both well-known and popular. The NR7 trading strategy was introduced by Toby Crabel in his 1990 book, ‘Day Trading with Short-Term Price Patterns and Opening Range Breakout.’ The strategy focuses…
The Internal Bar Strength indicator (IBS) is a technical analysis methodology used to gauge market momentum and identify short-term price reversals based on the position of a financial instrument’s closing price within the bar’s range for the previous day. The…
(Source) It feels like a lifetime ago when Graphyte moved into real-time personalization engines in 2018, as AI-driven models were becoming a thing in iGaming. Almost a decade later, AI is no longer an add-on tool that gives industries a…
For decades, traders have used momentum strategies, the idea that past winners keep winning, to find success in equity, currency, and commodity markets. While most research focuses on long-term trends over months or years, a groundbreaking study by Wen et…
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….
What is the Choppiness Index? The Choppiness Index is an indicator created by an Australian commodity trader, Bill Dreiss, to show when a market is choppy or trending. A choppy market is one that is ranging or in a tight…
George Washington’s Day/Presidents’ Day is a federal holiday in the US. But does it affect the US stock market? The US financial markets are not stock market open on George Washington’s Day or Presidents’ Day. Trading does not take place…
The Doji Candlestick Trading Strategy is popular, and the Doji pattern is one of the most famous candlestick patterns. A doji candle pattern is a specific candlestick formation used in technical analysis to identify market indecision, where the open and…
What are the Acceleration Bands? Acceleration Bands refer to a technical indicator plotted as an overlay on the price chart to show the direction of the trend and the momentum of the price action. Like the Bollinger Bands, the acceleration…
Investing in the S&P 500 for the long term has historically been a surprisingly safe bet. Studies show that over any 10-year period, the chance of losing money is just around 6%—meaning there’s a 94% probability of ending with a…
What is the Ease of Movement Indicator? The Ease of Movement (EMV) is a volume-based oscillator developed by Richard Arms that quantifies the relationship between price change and volume. It identifies the “path of least resistance”: a large price increase…
Key Reversal Day Pattern signals are often the difference between catching a massive trend change and getting trapped in a “dead cat bounce.” While many traders see a price fluctuation and guess, professional price action traders look for the specific…
What is the True Strength Index Indicator? The True Strength Index (TSI) is a momentum indicator that is based on a double smoothing of price changes. It is an oscillator, swinging between limits of -100 and +100, with 0 as…
Understanding volume analysis is very necessary for successful trading, and one indicator you can use for such analysis is the Volume Rate of Change (VROC). Do you know about this indicator and how to use it? In trading, the Volume…
One thing about the financial trading world is that traders are always looking for more tools to analyze the markets, and one such emerging tool is the Relative Volatility Index (RVI). What do you know about this tool and how…
In the fast-paced world of financial markets, traders are always seeking new indicators to perform better technical analysis and improve their trading game — one such indicator is the Range Expansion Index (REI). What do you know about this indicator?…
Determining the right mix of assets to help you reach your short-term and long-term financial goals is the key to building a winning investment portfolio. For many years, financial advisors and experts recommend the 60/40 portfolio because of its simplicity…
Seasonality has long been used in trading and investing: the idea that certain patterns in market returns repeat at similar times each year. In his book Quantitative Investing: Strategies to Exploit Stock Market Anomalies for All Investors, Fred Piard explores…
In the trading world, there are many technical indicators to help you understand market trends and many more are being created — one such indicator is Polarized Fractal Efficiency (PFE). What do you know about this indicator? Polarized Fractal Efficiency…
Are you excited to learn the 17 Key Mindset Traits of Successful Traders in Trading Psychology? In this article, we explore the mental framework that empowers you to confront market volatility with confidence. Unpack the traits that forge a winning…
George Washington’s Day/Presidents’ Day is a federal holiday in the US. But does it affect the US stock market? The US financial markets are not open on Presidents’ Day or George Washington’s Day. Trading does not take place on any…
Bond trading strategies are a great inclusion in a portfolio of strategies because they offer diversification and, most likely, uncorrelated returns. Bonds are complementary. First, you might want to have a look at other articles related to bond trading strategies:…
Trend following trading strategies aim to profit from existing market trends. They identify trends using technical analysis tools, enter trades in the direction of the trend, and exit when signs of reversal appear. These strategies focus on momentum, use risk…
Here’s an overview and list of 75 different types of candlestick patterns, categorized by their trading implications, along with trading rules and backtests: Therefore, the trader needs to know and understand up to 75 different types of candlesticks, as they…
You are going to learn 30 trading patterns with common types and strategies for elite traders in this article. This practical guide cuts through the complicated and detailed 30-trading patterns that smart traders use to read market trends and time…
What is the Relative Vigor Index (RVI) Indicator? The Relative Vigor Index (RVI) is a technical analysis indicator that measures price momentum by comparing the closing price to its trading range and using a simple moving average (SMA) to smooth…
The best Forex trading strategies focus on combining technical analysis with strict risk management, including trend trading, breakout, and range trading, tailored to specific timeframes like day trading or swing trading. Key approaches include following market trends, utilizing price action…
The 9/30 trading strategy is a trend-following strategy that uses two moving averages — a 9-period EMA (exponential moving average) and a 30-period WMA (weighted moving average) — to spot trading opportunities when there is a pullback. The 9-period EMA…
According to historical backtesting since 2014, Monday is the best day to buy Bitcoin. Buying late Sunday and holding through Monday has historically delivered the highest average daily return of 0.51%. Jump to backtest. If you’ve ever asked yourself what…
What Are Market Regimes in Financial Markets and Why They Matter for Trading Market regimes are broad patterns or phases of market behavior (for example, periods of high or low volatility) that persist for some time. They reflect underlying macro…
The Ben Felix Model Portfolio, developed by Ben Felix and Cameron Passmore of PWL Capital, is a globally diversified investment strategy that utilizes index funds and tilts towards specific factors, such as Size, Value, and Profitability, for added potential returns….
Key Summary: What is the Order Flow Trading Strategy?An order flow trading strategy is a method of trading that is based mainly on watching the flow of trading orders and the impact those have on the current price of an…
Proprietary trading – pros and cons – advantages and disadvantages There are both pros and cons to being a proprietary trader. Proprietary trading might not be so different than retail trading and you can mostly trade proprietary trading strategies as…
Below, you will find backtested and researched trading ideas and analysis for our 100 Trading Strategies for Sale. This little shop contains performance metrics, statistics, risks, historical performance, and figures. The historical performance and figures for strategies found in our…
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…
Correlation trading strategies are market-neutral trading approaches that exploit statistical relationships between financial instruments to profit from divergence or convergence in price movements. Correlation trading strategies revolve around exploiting statistical relationships between asset prices—how instruments like the S&P 500 and…
Today we are presenting 3 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…
Few concepts are as enduring as momentum and trend following. A recent research paper titled “A Century of Profitable Industry Trends”, authored by Carlo Zarattini and Gary Antonacci, explores a systematic approach to capturing these trends over a 100-year horizon….
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 January Barometer is a seasonal trading strategy that worked over many decades. While the traditional January Effect seems to be arbed away, the January Barometer has worked well for many decades. This is the January effect that works – the January…
This blog post explores fascinating new evidence from a research paper titled “From Red to Blue: The Long-Run Inversion of Political Cycles and Stock Market Returns Over 153 Years” by Han, Lu, Xu, and Zhou. The paper documents a fundamental…
There are several ways to smooth price data using the moving average technique, and one of the interesting averaging methods is the Modified Moving Average (MMA). What do you know about this MMA indicator? Also known as the Running Moving…
Profit Factor is a key performance metric used in trading to assess the profitability of a trading system or strategy. It’s calculated by dividing the total profit generated by winning trades by the total loss incurred from losing trades. Essentially,…
The landscape of cryptocurrency arbitrage has undergone a fundamental transformation over the last five years. What was once a manual game of spotting price differences between exchanges has evolved into a high-stakes technological arms race dominated by quantitative strategies and…
With trading strategies, there are many different ways to trade and as many different types of trading strategies. It’s important to remember that what works well for one person might not yield the same results for you. Conducting thorough data analysis and data-driven backtesting,…
Looking to understand Polkadot DOT futures trading contracts? These contracts let you bet on Polkadot’s price movements without owning the cryptocurrency. In this guide, we’ll explain how Polkadot DOT futures trading contracts work, why they’re beneficial, and how you can…
Candlesticks are a popular charting tool and are frequently used by promoters using anecdotal evidence. We use candlesticks in our charts ourselves, but not as a predictive tool in our trading strategies. In this article, we ask: do candlesticks work?…
AI trading strategies use algorithms to analyze data and improve trading decisions. This enhances efficiency and accuracy in the stock market. In this article, we’ll explore top AI strategies and their real-world applications. Key Takeaways AI Trading Strategies (Methods, Key…
uantitative analysis sifts through numerical data to deliver solid, evidence-based conclusions. Crucial for decision-making across finance, science, and technology, it unravels complex datasets to predict trends and enhance strategies. As you navigate this article, expect a clear exposition of its…
Amibroker is a popular software for algo traders and those who backtest. It’s inexpensive, fast, and offers all needed to improve your trading. We have been using Amibroker for many years, and absolutely all backtesting on this blog is coded…
Curious about leveraging Dogecoin’s price movements without holding the coin itself? A Dogecoin DOGE futures trading contract allows you to speculate on future prices and capitalize on market opportunities. This article covers everything you need to know about trading these…
Candlestick patterns have become popular tools for many traders, in their search for edges in the markets. One such candlestick pattern is the tweezer bottom. Key Takeaways A tweezer bottom is a candlestick pattern that forms as a bearish trend…
When a Bullish In Neck Line surfaces on your chart, it’s a critical moment to decide for trading strategy. Is the current uptrend set to continue, or is the Candlestick pattern a sign of an impending reversal? This article demystifies…
The Bearish Separating Lines is a rare bearish continuation pattern. It starts with a relatively strong bullish candle, followed by a strong bearish candle, whose opening price is at the same level as the opening price of the previous bullish…
How to enter and exit positions are important in trading – perhaps one of the most important aspects of trading. How do you enter and exit a trade? We all know commissions can eat into the profits, but slippage might…
Does market timing work on Bitcoin? Let’s play with some numbers and find out how removing certain observations influences the end result compared to buy and hold. We test by owning Bitcoin from January 2015 until the end of September…
Machine learning in trading strategies improves predictions and insights from data. In this article, discover how machine learning tools optimize stock trading, enhance predictions, manage risks, and ensure informed decisions. Key Takeaways Understanding Machine Learning in Trading Machine learning has…
This article looks at how to trade live and automated with Amibroker via Interactive Brokers. We have been using Amibroker for live automated trading for a few years, without any problems worth mentioning. Automatic trading with Amibroker and Interactive Brokers…
A bullish three white soldiers is a bullish reversal pattern that occurs at the end of a downtrend, and signals a positive trend reversal. The pattern consists of three consecutive tall bullish candles, contrasting with the ‘Three Black Crows’ which…
We have yet to see much quantified backtest of candlestick patterns. Practically all candlestick “analysis” is based on anecdotal evidence and some random charts showing successful trades (and ignoring the bad ones). Do candlesticks really work? We decided to find…
Venturing into Bitcoin trading Strategies requires a solid approach, and this guide is dedicated to outlining effective trading strategies that might suit different risk tolerances and trading styles. We look into the essentials of ‘HODLing’ as well as sophisticated algorithmic…
Candlestick Patterns have gained a lot of popularity among new traders and form a lot of patterns that are believed to predict the future moves of the market. One such pattern is the bullish homing pigeon. Key Takeaways The bullish…
Are you looking for Amibroker trading strategies? Are you looking for Amibroker code to make profitable trading strategies? If so, we might have exactly what you are looking for! Since we started this website back in 2012, we have published…
Transitioning a trading strategy from a backtest to live trading often yields unexpected results. While backtesting provides insights, it can’t fully predict real-world performance. This article details what can you expect from a trading strategy backtest when you are trading…
The rise of Bitcoin and cryptocurrencies has offered traders and investors another asset market to play in. One important characteristic of this market is its extreme volatility. To play in the market, one must have a strategy for the frequent…
Looking to trade with a bearish bias? The Bearish In Neck Line candlestick pattern may be just what you need to spot selling opportunities in the market. This article will delve into this pattern’s characteristics and potential meaning and explore…
As fancy as the name might sound, the Three Stars in the South candlestick pattern is just an extremely rare bullish reversal candlestick pattern. In this post, we will discuss the pattern in detail. Here are some of the things…
The Bearish Abandoned Baby pattern is a bearish reversal candlestick formation that appears in an uptrend and signals a potential trend reversal. This pattern is characterized by a gap up, followed by a Doji candlestick with a gap down, creating…
Candlestick Patterns have become the preferred technical analysis tool of many investors and traders, partly due to their easy-to-read and colorful markings, and the fact that they form many different types of chart patterns. One such pattern, which is the…
This review of Amibroker is based on many years of live trading. Prior to using Amibroker, I was trading semi-automatically by using a simple script in Excel. Having focused solely on stocks since 2001, I decided to start looking into…
If Bitcoin is the first thing that comes to your mind when you hear the term cryptocurrency, it is not your fault. Bitcoin has gained that popularity for more than a decade of its existence. However, Bitcoin is not the only…
Key Takeaways Candlestick Patterns and the candlestick chart was first used by Japanese rice traders in the 18thcentury and later became popular among Japanese financial market traders. It wasn’t until the 1990s that the candlestick chart became popular among Western…
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…
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…
Candlestick patterns provide plenty of insight into how the price moved in the recent past and how it might move in the near future. Some traders use these patterns to signal trade entry and exit points. While there are many…
The ‘Bullish Abandoned Baby’ pattern is a potential trend reversal pattern. In this article, you will learn about its characteristics, strategic trading tips, and the overall significance of this pattern in predicting bullish market shifts. We’ll also address its rarity…
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…
Since the emergence of Bitcoin in 2009, thousands of cryptocurrencies have been created. While many were created to solve a specific problem in the emerging blockchain technology, some cryptocurrencies are just spin-offs of the older ones, and Bitcoin Cash is…
Candlesticks are a popular charting tool because they “packs” data recordings into single easy-to-read price bars. The time frame of your choice can easily be interpreted in just one visual look at the chart. All charts on this website use…
