Last Updated on June 19, 2022 by Quantified Trading I have been backtesting swing trading (holding positions 1-5 days) for many years. But because I have done fairly well in day trading, I didn’t really put a lot of effort into swing trading. I never really started. But when my day trading got sour in…
Last Updated on July 7, 2022 by Oddmund Groette I have previously written some articles about the possibility of making money day trading: My Numbers 2002-May 2012 Automated Trading Tuco Trading From mid-2011 until mid-2012 I was going through a tough time trading. I hardly made any money. At the same time, I was moving…
Last Updated on June 19, 2022 by Quantified Trading This has been a pretty bad week for my day trading. Yesterday, Thursday, I recorded my 4th day in a row with losses. The loss was significant as well. I couldn’t remember the last time I had 4 days in a row! Looking through my records…
Last Updated on July 7, 2022 by Oddmund Groette (Some personal and random thoughts on day trading) I love day trading! I have day traded for over twelve years and I still like what I do. Actually, I love it! Day trading is some kind of addictive. I need my daily shot with research and…
Last Updated on August 6, 2022 by Oddmund Groette Mondays and Fridays often turn out to be reversals when they move hard either way. Today, we look at a reversal strategy that happens on Fridays. The results are very good with an average gain of 0.77% per trade. (This article was originally published in June…
Last Updated on June 19, 2022 by Quantified Trading Mondays have turned out to be reversal days, at least on the long side after a fall on Mondays or the days leading up to Monday. Letæs test a reversal trading strategy: In this article, we test a Monday overnight reversal trading strategy in the S&P…
Last Updated on July 7, 2022 by Oddmund Groette I have received some e-mails about how I allocate my capital. I admit that this is a problem and quite a difficult task. Sometimes I have no positions, suddenly all my signals trigger and the allocation becomes a problem. My aim is to trade different stocks…
Last Updated on June 19, 2022 by Quantified Trading I caught some ideas from Paststat and Quantifiable edges to test “big” movement on Mondays. I have tested this in a previous post, but this time we’ll look at what happens to SPY the rest of the week. Here are the criteria for long: Today is…
Last Updated on June 19, 2022 by Quantified Trading A while back I wrote about a day trading strategy in SPY. This one works pretty well on XLP as well, with some modifications: The high and low divergence mean reversion trading strategy The strategy is like this in plain English: Calculate a 25 day average…
Last Updated on July 7, 2022 by Oddmund Groette I have day traded for about 12 years, doing swing trading some 5 years prior to that. And as the headline suggests my fear of losing increases as I get older. Why is that? I think it’s just natural. I know a lot more now than…
Last Updated on June 19, 2022 by Quantified Trading This article presents an overnight trading strategy in the S&P 500. Overnight means entering at the close and exit at tomorrow’s open. We exit at the next open no matter the price movement during the night session. We have previously written about other overnight trading strategies…
Last Updated on July 7, 2022 by Oddmund Groette I have just finished reading Curtis Faith’s The Way of The Turtle (for the second time) and below you find some very short comments about the book. This is a very good book! If you’re a beginner or not very experienced this would be one of…
Last Updated on June 19, 2022 by Quantified Trading How To Find and Generate Trading Ideas. Once in a while, I receive e-mails from readers wondering how they can generate trading ideas to test. How to generate trading ideas is one of the most important issues for a trader. Furthermore, you need to backtest a…
Last Updated on June 19, 2022 by Quantified Trading Some weeks ago I wrote about a potential daytrading strategy in XLP. This is a similar test done in SPY: Yesterday the formula (c-l)/(h-l) must have been lower than 0.1. Today SPY opens down. If these two simple criteria are fulfilled, then go long at the…
Last Updated on July 7, 2022 by Oddmund Groette The risk is real, and trading is not easy. The above quote is from page 110 in Curtis Faith’s The Way of The Turtle. A great book! This sentence captures the essence of trading: a very difficult endeavor that ultimately leaves your inner strength exposed. It…
Last Updated on July 7, 2022 by Oddmund Groette Ever so often I read how important risk management is. Yes, it might be important but my experience has told me it’s of no use to predefine risk and AFTER make strategies based on your risk tolerance. In my opinion that is doing it backward. I…
Last Updated on July 7, 2022 by Oddmund Groette One of your most precious assets is your time. You only live once. Make sure you make it worthwhile! Before Christmas, I received an e-mail from someone who has been trading for several years, but with little financial results to speak of. I could feel his…
Last Updated on June 19, 2022 by Quantified Trading I’m a subscriber to The Economist. Being a libertarian, this is the best newspaper there is, even though it’s not perfect and over the years have become a bit more leftist (?). Still, I strongly recommend it. In the January 12th, 2013 issue there is an…
Last Updated on July 7, 2022 by Oddmund Groette S&P 500 has historically a strong tendency to revert to the mean. I’m looking to find a way to fade the gap. My research has indicated that fading the gap is best after a strong move in either direction. Thus: The high and low divergence day…
Last Updated on July 7, 2022 by Oddmund Groette What is negatively skewed distribution in trading strategies? Negatively skewed trading strategies are “accidents waiting to happen”: You have many small winners and rare big losers. Unfortunately, the big losers can put you out of business. This is what a negatively skewed distribution in trading strategy…
Last Updated on July 7, 2022 by Oddmund Groette I have previously written one article about the possibility of making money in daytrading: Is It Possible To Make Money Day Trading? My numbers July 2012 – July 2013 Is It Possible to Make Money Day Trading? Can you make money day trading? (My numbers) Is…
Last Updated on July 7, 2022 by Oddmund Groette This was a long headline, which probably won’t catch many readers. Anyway, the trading strategy has proven to perform well in the past but in the last years up to 2021, it has been rather flat. In trading, boring is good. The strategy is tested on…
Last Updated on June 19, 2022 by Quantified Trading 2012 is history. It was a decent year for me both personally and professionally. Trading wise, I improved a lot compared to 2011 which was a disaster and kind of a wasted year. 2012 showed a really nice development in the second half. I managed to…
Last Updated on July 7, 2022 by Oddmund Groette My experience is that the most boring stocks are the best for day trading. Many day traders are thrill-seekers, which is too bad, because I think the best stocks are those that are most boring. Low beta and low volatility are good for day trading I…
Last Updated on June 30, 2022 by Quantified Trading Jay Kaeppel wrote an interesting post about gold stocks: The greatest gold stock system you’ll probably never use. I have a twist to this system which I’ve been trading for some weeks. Since Kaeppel has published it I might as well publish it myself. And it’s…
Last Updated on June 19, 2022 by Quantified Trading The price of oil is seen as a hedge against a falling dollar. If the dollar falls, the oil price should rise (or vice versa). What happens the next day if they go in tandem? Let’s test an oil and dollar trading strategy. If the dollar…
Last Updated on July 7, 2022 by Oddmund Groette One famous seasonality in the oil market is the tendency for the oil price to rise on Fridays. Let’s the Friday seasonality in the oil price. We buy the day before – Thursday. It seems like just buying on any Thursday’s close is not such a…
Last Updated on June 19, 2022 by Quantified Trading Gold gaps up and down a lot, much more than stock indices. Based on the size of the gap in gold, we develop a gold gap strategy. Previously I have only day traded stocks and traded SPY/ES. Over the last couple of months, I have also…
Last Updated on July 7, 2022 by Oddmund Groette 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 day before if the 15th was…
Last Updated on June 29, 2022 by Oddmund Groette The overnight edge in the stock market is well documented: By using the tailwind from the close until the next open, you can develop some good short-term trading strategies. In this article, I present 4 overnight trading strategies in the S&P 500. The strategies buy at…
Last Updated on June 19, 2022 by Quantified Trading On the internet and in the blogosphere there are a lot of articles saying trend following is dead. The reason is as usual due to lack of returns over some period of time. Is trend-following dead (again)? Or is this just the normal out-of-favor cycle that…
Last Updated on July 7, 2022 by Oddmund Groette What can we learn from the habits of rich and wealthy traders? In the March 2012 issue of Trader’s Magazine, there is an article on page 6 by Tim Bourquin. He has interviewed many profitable traders. He compiled a list of 20 “habits” that he thinks…
Last Updated on July 7, 2022 by Oddmund Groette Once in a while, I grab one of my about 100 trading/investing books. This is mainly to get inspiration and perhaps one or two ideas to test. The best books for inspiration are the Market Wizards by Jack Schwager. Over the weekend I read the chapter…
Last Updated on June 19, 2022 by Quantified Trading During my early days as an investor/trader in the early 90’s, I was told (in many books) that an up day that finishes near the low of the range is a bad sign. Is this true? The only way to find out is by backtesting. Backtesting…
Last Updated on June 19, 2022 by Quantified Trading Today SPY opened down about 0.8%. From then it has fallen even more, and in time of writing is down 1.5% since the open. A quite tough day for the longs. Looking at what has happened on similar days since January 2010 (open more than 0.7%…