Do Candlesticks Pattern Work? Are They Reliable? A Quantitative Backtest Of 23 Candlesticks (Trading Strategy)

Last Updated on June 22, 2022 by Oddmund Groette 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…

Candlestick Pattern – Doji Trading Strategy (Backtest and Historical Performance)

Last Updated on June 22, 2022 by Quantified Trading Doji trading strategies are popular and the doji pattern is one of the most famous candlestick patterns. Candlestick patterns have several “derivatives” and can be used together with other bars. There are at least 64 different candlestick patterns that have been given a name, please read…

3 Bullish Candlestick Patterns That Work (Backtest and Historical Performance)

Last Updated on June 22, 2022 by Oddmund Groette Very few bullish candlestick patterns work, but this article presents 3 bullish candlestick patterns that work. Even though Candlesticks are a popular charting method, very few of the patterns have any predictive value. We use candlesticks extensively ourselves for charting because we believe they give a…

President Election Cycles Stocks — What Are They? (Backtest)

Last Updated on June 27, 2022 by Oddmund Groette 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 presidential election cycles. But what exactly are they?…

What Is The Put Call Ratio? Does It Work? (Backtest And Strategy)

Last Updated on June 22, 2022 by Quantified Trading The Put-Call ratio is a popular sentiment indicator. Extreme readings, mostly signaling panic and climax, are often used as contrarian signals to fade the market. For example, a high put reading might signal that traders and investors are panicking and are buying downside insurance (put options…

Turtle Trading Strategies: Rules, Statistics, and Backtests – Does It Still Work?

Last Updated on June 23, 2022 by Oddmund Groette Turtle trading strategies are a trading approach named after Richard Dennis’ popular trading experiment in 1983. The experiment was to determine whether trading was an inborn skill or could be learned. The turtle trading experiment was a huge success, and the strategy employed by those traders…

Can You Day Trade With Daily Bars? Is It Even Better? (Day Trading Strategies And Backtests)

Last Updated on June 19, 2022 by Quantified Trading You might wonder which time frame to watch when day trading. Instinctively you might believe you need intraday bars, ie bars 5-minute bars, 60-minute bars, etc. However, after reading this article we hope you are reconsidering. Can you day trade with daily bars? Yes, you can…

3 Volatility Strategies To Get You Started Trading Volatility – (Trading Strategy Bundles)

3 Volatility Strategies To Get You Started Trading Volatility – (Trading Strategy Bundles)

Last Updated on June 19, 2022 by Quantified Trading This bundle consists of three strategies that can be labeled volatility strategies. The idea and logic work in a variety of assets. In all our bundles you will find both Amibroker code, Tradestation code, and the strategy written in plain English. The strategies are long-only due…

3 Beginner Strategies In SPY and ES (ETF and Futures) – (Trading Strategy Bundles)

3 Beginner Strategies In SPY and ES (ETF and Futures) – (Trading Strategy Bundles)

Last Updated on June 19, 2022 by Quantified Trading 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. In all our bundles you will find both Amibroker code, Tradestation code and the strategy written in…

Consumer Confidence And Stock Market Returns (Strategy And Backtest)

Last Updated on June 20, 2022 by Oddmund Groette Consumer confidence 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 gloom on a monthly basis. Consumer confidence…

The Easter Holiday Effect In Trading (Holy Thursday – Best Day Of The Year For Stocks?)

Last Updated on June 19, 2022 by Quantified Trading Easter is a Christian holiday celebrated across the world. But does it affect trading on the U.S. stock exchanges and other financial markets? We look at how the stock market performs before and after the Easter holiday. Additionally, we specifically look at the performance of stocks…

Which Trading Hour Is The Best? When Should You Buy And Sell During The Day?

Last Updated on June 19, 2022 by Quantified Trading Which trading hour is the best? Does the time of day make a difference when trading? When should you buy and sell during the trading day? Seasonal trading strategies can take many forms and in any time frame. This article looks at intraday data for some…

The 4th of July Holiday Effect In Trading (Independence Day Effect – Backtest)

Last Updated on June 19, 2022 by Quantified Trading 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 mark US independence. No trading takes…

George Washington Day/President’s Day Holiday Effect In Trading

Last Updated on June 19, 2022 by Quantified Trading George Washington’s Day/Presidents’ Day is one of the federal holidays in the US. But does it affect the US stock market? The US financial markets do not open on George Washington’s Day or Presidents’ Day. Trading does not take place on any of the U.S. stock…

70+ Free Trading Strategies (Quantified Systems)

Last Updated on June 23, 2022 by Oddmund Groette On this page, we have compiled all the trading strategies we have published since our start in 2012 (plus trading relevant articles). The page contains 80+ free trading strategies plus articles about indicators and trading strategy-specific articles. If you don’t want to browse through all the…

Nassim Nicholas Taleb – The Barbell Strategy (Options, Trading Strategies And Philosophy)

Last Updated on June 19, 2022 by Quantified Trading 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…

AAII And Market Sentiment Indicators – How To Trade It (Examples And Backtests)

Last Updated on June 19, 2022 by Quantified Trading Can you make money on a bullish or bearish AAII market sentiment indicator? When the pessimists turn optimistic and the optimists turn pessimistic a bottom or top is formed. If you understand market sentiment and where traders and investors feel the most pain or euphoria, you…

Tail Risk Hedging Strategies – What Is It? (Tail Hedge Examples)

Last Updated on June 19, 2022 by Quantified Trading How can you hedge against huge losses from totally random and unpredictable events? How can you insure yourself from devastating losses that come out of the blue? This is what tail risk hedging strategies are all about. Tail risks in the stock market are hard to…

Ray Dalio’s All Weather Portfolio (Backtest, What Is It, Returns, Performance) [Trading & Investment]

Last Updated on June 27, 2022 by Oddmund Groette 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…

Ray Dalio – Life, Investment And Trading Strategies, And Philosophy

Last Updated on June 19, 2022 by Quantified Trading Ray Dalio is one of the world’s most known investors. Who is he? How does Ray Dalio invest? What is his famous All-Weather Portfolio? What are Ray Dalio’s investment strategies? These are some of the answers we answer in this article. At the end of the…

Rory Sutherland Alchemy Summary – Being Slightly Bonkers Can Serve You Well In Trading

Last Updated on June 19, 2022 by Quantified Trading Rory Sutherland Alchemy Summary. The models that dominate all human decision-making today are duly heavy on simplistic logic, and light on magic – a spreadsheet leaves no room for miracles. But what if this approach is wrong? What if, in our quest to recreate the certainty…

Uncorrelated Assets And Strategies – Benefits And Advantages (Non Correlated Examples And Backtests)

Last Updated on June 19, 2022 by Quantified Trading Uncorrelated or non-correlated assets and strategies are a traders’ goldmine. Why? Because it reduces risk and (might) increase returns. However, constructing a basket of stocks, assets, or strategies that are uncorrelated or non-correlated is probably the most difficult task in trading and investing. In this article,…

Quadruple Witching Day – What Is It And Is It Bullish Or Bearish? (Quad Witching Backtest)

Last Updated on June 19, 2022 by Quantified Trading Quadruple witching day (quad witching)- facts vs myths. Because the quadruple witching day is surrounded by presumable myths, we would like to dig deeper into these rare days that happen only four times per year. Is quadruple witching a volatile day? Is the volume higher than…

Do Stocks Outperform Treasury Bills? (Not What You Expected)

Last Updated on June 19, 2022 by Quantified Trading Hendrik Bessembinder, an academic, published a study in 2017 that went on to become widely spread and known. His hypothesis was pretty straightforward: do stocks outperform Treasury Bills? No, most stocks fail to beat one-month Treasury Bills during their lifetime as a public company, a fact…

Gold Moving Average Strategy – Best Trend Following System for Gold Trading (Backtest and Statistic)

Last Updated on June 19, 2022 by Quantified Trading Gold Moving Average Strategy and Trend following systems work. Below we present a very simple trend following system in gold: In this article, we look at how you can use the 12-month (250-day) moving average to outperform the gold price. Gold spends most of the time going…

The Best Moving Average Indicator – A Comparison and Backtest of all variants of MA Trading Strategy

Last Updated on June 19, 2022 by Quantified Trading Moving average trading strategies are widely discussed and used in the media and likewise frequently used by analysts when making calls about the future. What is a moving average and can we find profitable moving average strategies on stocks? Backtests reveal that moving averages work best…

What Happens To Stocks When Bonds Go Up? (Trading Strategy Backtest)

Last Updated on June 19, 2022 by Quantified Trading Any stock investor or trader should have a basic understanding of the relationship between stocks and interest rates. Why? Because the interest rates influence investors’ risk appetite. When interest rates are high, you need to pay more for a company’s earnings (thus a lower PE ratio)….

What Happens To Stocks When Bonds Go Down? (Trading Strategy Backtest)

Last Updated on June 19, 2022 by Quantified Trading The relationship between stocks and interest rates is at the center of financial theory. Why? Because the interest rates determine the value of stocks. High rates equal less appetite for owning risky assets, and investors will only own risky assets if they are compensated for taking…