Welcome to Quantified Strategies
Last Updated on February 14, 2023
What Is A Death Cross In Trading? Does It Work? (Backtest)
Last Updated on March 31, 2023 The Death Cross in trading is a widely cited phenomenon in the financial media. As of writing, the media is full of stories about the price of Bitcoin being close to the Death Cross. In this article, we look at the performance of the Death Cross in the S&P…
Asset Allocation Strategy (Strategies And Portfolios)
Last Updated on March 30, 2023 Asset allocation is the allocation of investments across different classes of assets. In a broad sense, this means a combination of stocks, bonds, various securities and money market instruments. Within these classes, subclasses are also distinguished: Asset allocation strategy (strategies) We have provided several examples of backtested asset allocation…
Seasonal Trading Strategy For Silver (Seasonality Backtest)
Last Updated on March 28, 2023 A big part of a successful trading strategy is seasonal trading. As we are about to see, this is especially true in commodities. Today we will look at a seasonal trading strategy for silver where we invest only in the best-performing months. Since 2001, it has outperformed buy and…
Meb Faber’s Global Asset Allocation Portfolio
Last Updated on March 24, 2023 Today we will look at Meb Faber’s Global Asset Allocation portfolio from his book of the same name. The Global Asset Allocation portfolio is a passive investment strategy that aims to provide investors with a diversified exposure to global asset classes. In this article, we will explore the portfolio’s…
Meb Faber’s Global Market Portfolio
Last Updated on March 23, 2023 Today we will look at a portfolio published by Meb Faber in his book Global Asset Allocation. The Global Market Portfolio is a passive investment strategy that aims to capture the returns of the global financial markets by investing in a diversified mix of asset classes. Before 2000, the…
Trend Following Trading Strategies and Systems Explained (Including Backtest and Statistics)
Last Updated on March 23, 2023 Trend following strategies and systems are popular, especially in the commodity markets, and we aim to shed some light on this type of investing in this article. In this article, we take a deeper look at explaining what trend following is. Do trend following systems work? Which markets do…
Do Trend Following Trading Strategies Work? Why Does Trend Following Work?
Last Updated on March 23, 2023 Trend following has many followers, for some investors and traders trend following is like a religion. But does trend following work? And if so, why does it work? Yes, trend following does work. If we look at history, even simple trend strategies work remarkably well. In this article, we…
Paul Merriman 4 Fund Portfolio – Backtest And Performance
Last Updated on March 24, 2023 Paul Merriman is a financial advisor and has presented several low-cost “passive” investment strategies. One of them is Paul Merriman 4 Fund Portfolio. What is it, and how has it performed? Paul Merriman 4 Fund Portfolio is a simple investment strategy consisting of four low-cost index funds with large…
Peter Lynch Strategy And Portfolio
Last Updated on March 23, 2023 Peter Lynch is a famous but retired money manager. Lynch managed the Magellan Fund of Fidelity from 1977 to 1990 with outstanding returns: more than double the S&P 500’s return. Lynch made 29.2% annual returns for his investors and retired at his peak in 1990. He was a proponent…
RSI Range-Momentum Trading Strategy (Backtest)
Last Updated on March 19, 2023 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 trading strategy uses the RSI as a momentum indicator…
What Are The Best Days To Trade Stocks?
Last Updated on March 18, 2023 Becoming a proficient trader involves recognizing when it’s best to trade, making it crucial to identify the art of knowing when to take the front seat. Consequently, determining the most favorable days to trade stocks is just as crucial as any other aspect. So, what are the best days…
Supertrend Indicator Strategy – (Backtest, Settings, Formula, And Performance)
Last Updated on March 21, 2023 In this article, we will discuss an indicator called SuperTrend, which has a very promising name. So, what is the SuperTrend indicator exactly? The SuperTrend indicator is a type of trend following indicator that was created by trader Oliver Seban. It signals the direction of a trend, its continuation,…
Bond Trading Strategies – How To Trade Them (Backtests)
Last Updated on March 16, 2023 Despite being much larger than the stock market, the bond market gets much less attention from short-term individual traders. That’s a shame because bonds are great trading vehicles. This article will explore bonds and show you examples of how you can trade them. Why would you trade bond trading…
Weekly Rotating System Between S&P 500 And Utilities (SPY And XLU)
Last Updated on March 16, 2023 Today we will look at a strategy published by Michael Gayed in his paper An Intermarket Approach to Beta Rotation: The Strategy, Signal and Power of Utilities. Gayed’s paper is among the most downloaded papers on the SSRN website. The strategy consists of a weekly rotation system between the…
Coppock Curve Strategy – What Is It And How Does It Perform? (Backtest)
Last Updated on March 10, 2023 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 E.S.C. Coppock under a mandate from the Episcopal Church…
The Opening Price of a Stock: How I Used It In A Trading Strategy
Last Updated on March 13, 2023 The stock market is officially open for 6.5 hours daily and has an opening and closing price for each stock. What is the opening price of a stock? The opening price of a stock (or any asset on an exchange) is the price of a security when it opens…
S&P 500 Momentum Strategy – As Simple As It Gets (Backtested)
Last Updated on March 8, 2023 Momentum trading is the opposite of buying low and selling high: momentum is about buying strength. Can we make a successful momentum strategy for S&P 500? Yes, a momentum strategy for the S&P 500 works. We use monthly bars and a simple moving average strategy crossover system. Let’s show…
What Is A Golden Cross In Trading? Does It Work? (Backtest)
Last Updated on March 21, 2023 The Golden Cross in trading 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 one long. We use the 50 and 200-day…
How Jim Simons’ Trading Strategies Made 66% A Year (The Medallion Fund’s Strategies)
Last Updated on March 10, 2023 Jim Simons recently stepped back as the chairman of Renaissance Technologies, the asset management group that manages the most profitable fund ever: The Medallion Fund. What are the secrets and trading lessons of the Medallion Fund’s trading strategies? How has Jim Simons gotten a whopping 66% return on average…
Combining Long And Short Strategy Bundles (29% in 2022)
Last Updated on February 9, 2023 Let’s look at what happens when you combine long and short strategies. For example, we’ll look at our Strategy Bundle 1 and the Short Strategies Bundle and see what happens when we combine them. Bundle 1 trades SPY (you can also use @ES), while the Short Bundle trades SPY,…
The Internal Bar Strength (IBS) Indicator [Including Quantified Strategies]
Last Updated on March 9, 2023 The Internal Bar Strength indicator (IBS) has worked remarkably well for over two decades. We can only guess why, but the stock market has been highly mean-reverting during this period, and this has, of course, given the IBS a nice tailwind. IBS is simply an indicator where you buy…
3 Beginner Strategies In SPY and ES (ETF and Futures) – (Trading Strategy Bundles)
We have put together a “strategy pack” (bundle) of 3 strategies in S&P 500 (SPY or ES). The bundle consists of three strategies that we believe complement each other (charts and data updated per January 2023). In all our bundles you will find both Amibroker code, Tradestation code and th e strategy written in plain English. The…
The Options Expiration Week Effect (Options Week Anomaly And Seasonality) | OPEX
Last Updated on March 10, 2023 The options expiration happens on the Friday before the 3rd Saturday of each month in the US. An often referred to effect is the options expiration week effect. Is this effect real, or is it just a myth? In this article, we test the option expiration week effect: S&P…
Night Strategies Trading (Overnight Trading Strategies)
Last Updated on March 14, 2023 Overnight stock trading strategies are popular for a good reason: they offer good risk and reward. All markets are different and have their own seasonalities and tendencies, but in the stock market, the tendency is for the gains to accrue during the night – ie. an overnight bias. This…
Do Candlesticks Pattern Work? Are They Reliable? A Quantitative Backtest Of 23 Candlesticks (Trading Strategy)
Last Updated on February 9, 2023 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? Yes, candlesticks work. We test 23 different candlestick patterns…
Ray Dalio’s All Weather Portfolio (Backtest, What Is It, Returns, Performance) [Trading & Investment]
Last Updated on February 9, 2023 Ray Dalio’s All Weather Portfolio is a pretty well-known portfolio, and for good reasons, in our opinion. Ray Dalio and his team at Bridgewater Associates constructed the All Weather Portfolio to withstand every economic environment (and shocks) possible. What exactly is the All-Weather Portfolio? Which assets are included? How…
10 Swing Trading Strategies Backtested (With Historical Performance)
Last Updated on March 10, 2023 What is the best strategy for swing trading? Is swing trading still profitable? 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 to swing trade and how to make money. Unfortunately, almost all…
Nassim Nicholas Taleb – The Barbell Strategy (Options, Trading Strategies And Philosophy)
Last Updated on February 9, 2023 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 opinion Fooled By Randomness from 2001 is his best…
3 Free Mean Reversion Trading Strategies (Backtested Buy And Sell Signals)
Last Updated on March 10, 2023 Today we are presenting three free 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 and which markets are best for mean reversion…
Mean Reversion Trading Strategies and Backtest | (Pros And Cons Of Mean Reverting Systems & Indicators)
Last Updated on March 10, 2023 Mean Reversion Trading Strategies and Backtest. How do you create or build a trading strategy that is based on reverting to the mean? What are the pros and cons of mean reversion trading strategies? Do mean reversion strategies work? This article gives you some input and advice on how…
The Turnaround Tuesday Trading Strategy
Last Updated on February 9, 2023 The Turnaround Tuesday Trading Strategy The Turnaround Tuesday effect happens from the close of Monday’s trading session until (at least) the close of Tuesday’s trading session. The effect is no myth! Let’s do some backtesting to find what seems to work and not work. This article looks at the…
200 Day Moving Average Trading Strategy – (With Backtest And Indicator)
Last Updated on February 23, 2023 The 200 day moving average 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.? Among the moving averages, the 200-day moving average is probably…
Lower Highs And Lower Lows Pattern (Trading Strategy)
Last Updated on March 3, 2023 The lower highs and lower lows pattern signals a downtrend. Is this likely to continue or reverse? What is the meaning of a lower highs and lower lows pattern? In almost all markets, the lower high and lower low pattern signals a short-term reversal. We develop multiple lower high…
Oscillating Indicators – Which Is The Best For Trading Strategies?
Last Updated on February 9, 2023 Which is the best oscillating indicator for trading strategies? When you start out in trading it might be a daunting task to understand all the bells and whistles provided by your trading software. There are plenty of indicators, moving averages, and oscillators to use. How can you use the…