Orange juice OJ futures strategy refers to the methods and techniques you can use to trade FCOJ futures contracts profitably. Orange juice OJ futures are contracts to receive or deliver the specified quantity of frozen concentrated orange juice on a…
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….
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…
What market indicators should you track to forecast trends and make smarter investment choices? This guide answers precisely that, as we cut through complex financial noise to spotlight the market indicators that matter. From assessing overall market health to identifying…
There are plenty of potential option strategies, and one of them is selling puts. In this article, we look at how you can make money by writing or selling puts – also called cash secured put. Is selling puts a…
Trading timeframes determine how long you hold a trade. They help shape your trading strategy and manage risk. This guide will explain different timeframes and how to choose the best one for your trading style. Key Takeaways Understanding Trading Timeframes…
Investors scouring the stock market aim to decode price movements and trends to make profitable trading decisions. Technical analysis, with its plethora of indicators, serves as a critical tool in this quest. But with so many options, which indicators actually…
If you’re asking ‘what is the success rate of trend-following trading strategies,’ you’re looking for clear-cut numbers and straightforward facts. Trend following, a strategy built on capturing market momentum, does not have a one-size-fits-all success metric. Rather, its efficiency is…
Want to know about the VIX futures trading strategy? Introduced in 2004, VIX futures offers market participants the ability to trade a liquid volatility product based on the VIX Index — an index that measures implied volatility in the U.S….
Curious about what is the accuracy of RSI trading strategies? In the unpredictable world of trading, RSI (Relative Strength Index) stands out as a popular technical indicator, but its true power rests upon how it’s wielded. Key factors such as…
When you look up “what is success rate in trading strategies”, you want the hard facts: how likely is it that you’ll make profitable trades with the approach you’re taking? This key figure, expressed as a potent percentage, encapsulates your…
Since January, we have developed a new service called DAILY ANALYSIS. We search for compelling patterns (edges) in the main asset classes each morning (S&P 500, bonds, and gold). You can subscribe monthly or annually. We make trading rules of…
If you’re looking to validate your trading strategies, historical data backtesting is indispensable. By analyzing how your strategies would have fared in previous market conditions, you can refine them without facing financial risk. This article unpacks the essentials of backtesting,…
Want to know how to get started creating trading strategies? This guide will walk you through the essential steps—from basics of trading to defining your own strategy and managing risks. By the end, you’ll be equipped with the knowledge to…
Learning how to build an algorithmic trading strategy starts with defining rules for trades, coding those rules into a program, and rigorously testing the program. This guide will cover each step in detail, including the tools and skills you need…
Are you looking to invest in Chick-fil-A stock? You might be seeking to buy shares of this fast-food giant known for its chicken sandwiches, but the fact is, Chick-fil-A stock is not available to the public as the company remains…
Investing in Hulu stock directly is not an option, as Hulu does not have its own stock ticker. Instead, it’s a strategic asset within the portfolios of Disney and Comcast. This article delves into the insider view of Hulu’s ownership…
Is it a good idea to buy stocks setting 252-day lows? In this article, we backtest a 252-day low trading strategy for stocks. No, it’s not a good idea to buy stocks that set new 252-day lows. The 252-day low…
Is it smart to buy stocks setting 252-day highs? Let’s backtest a 252-day high trading strategy for stocks. The 252-day high trading strategy for stocks returned 9.6% annually while using, on average, 83% of the capital. 252-day high trading strategy…
Wondering how to capitalize on the movements of market giants? Order block trading is your answer. These crucial market territories, carved out by hefty institutional orders, can dictate the ebb and flow of prices. Recognizing and using order blocks properly…
Sunk cost fallacy bias in trading causes traders to irrationally cling to losing investments because of past costs. In this article, we’ll explore what the sunk cost fallacy is, why it happens, and how traders can avoid making costly decisions…
Trading commodity futures is one way to diversify your portfolio and explore investment avenues beyond traditional securities, and coffee futures are among the most actively traded soft commodities on the commodity exchanges. To trade coffee futures successfully, you need to…
This article shows you how to short retail investors’ favorite stocks. Is it possible to make money shorting stocks? It is, albeit it’s very difficult. In the context of a bear market, where stock prices can rapidly decline and volatility…
Merger arbitrage is a nuanced investment strategy that aims to profit from the price discrepancies of companies during a merger. This article unpacks the technique, explores the risks, and guides you through the complexities, equipping you with the knowledge to…
Market neutral trading is an investment strategy designed to generate profits regardless of market direction. It involves balancing long and short positions to neutralize market risk and focuses on exploiting pricing inefficiencies for consistent returns. In this article, we’ll explore…
Quantitative 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…
Index arbitrage is about smartly navigating price differences between stock indexes and their constituent stocks for a profit. Straightforward and efficient, this primer unpacks how traders use index arbitrage techniques to capitalize on market inefficiencies, provides insights into the risks…
Time horizon bias in trading can skew your investment decisions towards short-term gains, often at the expense of long-term success. This article delves into the nature of time horizon bias, its impact on trading, and practical strategies to overcome it….
Searching for ‘indicators for technical analysis’ means you’re looking for clarity on which tools will sharpen your trading decisions. This guide offers a straightforward rundown of essential technical indicators, such as trends, momentum, volume, and volatility measures, and explains how…
The XLK/XLU ratio is the XLK ETF price divided by the XLU ETF price. It is often used to read market sentiment. A rising XLK/XLU is considered bullish, while a falling ratio is considered bearish. In this article, we backtest…
The S&P 500 is the most followed index in the world. As such, it catches a lot of attention when it is up for many weeks in a row. But how does it perform after being up for eight consecutive…
For more than 7000 years, cotton has been one of the raw materials used in the production of textiles and other fiber-requiring materials including fishnets and gunpowder. In fact, its use continues to increase and now accounts for over 35%…
Escalation of commitment bias in trading is when traders persist with losing trades due to previous investments. This common pitfall can lead to substantial financial losses. Why do traders fall into this trap, and how can they avoid it? This…
Integral to Australia’s financial framework, the Australian Securities Exchange stands as the foremost exchange for trading securities in the country. It attracts investors with its deep markets, extensive array of listings, and opportunities for strategic investment. The significance of ASX…
We have updated our swing trading course. Check it out here: BUY NOW What does our Swing Trading Course cover? The course has the following lessons: When signing up you get an automatic e-mail that contains the URL and you…
Trading rules are the heart of a mechanical or algorithmic trader. This article helps you understand the importance of specific trading rules, making you better prepared to face the markets. It’s a trading GPS! We have made plenty of trading…
Only a few people succeed at trading, and those who do, take a long time to learn their craft. As with every other profession, it takes time to understand the different elements of trading. Why Do People Think Trading Is…
Ulcer Index charts the course through investment uncertainty, marking not only the depth of potential losses but their duration. This essential guide details the Ulcer Index’s purpose, its calculation method, and how it stands apart from other risk metrics to…
Introduction Options trading in EEM is an increasingly popular way for investors to gain exposure to the market. Trading options gives traders the opportunity to make profits from both rising and falling markets, and with options, traders can also use…
Introduction Options trading in Tesla (TSLA) has become an increasingly popular way for investors to generate profits. Options trading involves the purchase or sale of derivatives that give the holder the right, but not the obligation, to buy or sell…
Introduction Options trading in Amazon (AMZN) has become a popular trading strategy among investors. It offers a variety of strategies that can be used to take advantage of the stock’s price movements. Options trading allows investors to speculate on the…
What’s the probability of making a loss in the stock market? If you are patient, the odds are on your side. Let’s have a look: The likelihood of experiencing a financial loss in the stock market within a single day…
What percentage of CFD traders lose money? Our informal survey suggests that between 62% and 82% of all retail CFD traders lose money. The best CFD broker has “only” 62% losing traders, while the worst has 82%. These are pretty…
Every trader faces a gauntlet of common mistakes that can erode profits and derail investments. Identifying and avoiding common trading pitfalls is not just about being cautious; it’s about being smart and strategic with every decision you make. This article…
Are you considering leveraging your investment strategy with margin trading? Margin trading is a method that allows traders to amplify their buying power by borrowing funds from a broker. With this approach, you can potentially increase your profits, but it’s…
Index trading allows investors to trade on the performance of a whole market or sector rather than individual stocks. This introduction to index trading breaks down the essentials of index tracking, simplifies the complexities of taking positions, and outlines trading…
Pivot point trading strategies involve using key support and resistance levels calculated from previous market data to determine potential entry and exit points for trades. We have been investing and trading for about 21 years, but not until now have…
What happens when SPY is down 4 days in a row? Let’s test 4 down days in a row trading strategy. Entry is on the close and exit is on the first day with a close higher than the previous…
This Every Open Down Trading Strategy, tested with ETF SPY (representing the S&P 500), operates on a basic principle: buying when the market opens down and selling at the close, with specific criteria guiding entry and exit points. The simplicity…
This S&P 500 Reversal Trading Strategy offers a structured approach to potentially profit from market reversals, emphasizing the importance of meticulous testing and adaptability in the dynamic world of trading. Mondays and Fridays often bring about significant reversals in the…
Discovering profitable trading strategies can be both exciting and challenging. One such strategy, known as the Overnight Reversal Strategy, focuses on capitalizing on potential market reversals that occur specifically on Mondays and Tuesdays. By analyzing historical market data, this article…
Introducing the “3 Days Down Overnight Trading Strategy”: This strategy focuses on the S&P 500 index, tracking its movements over a three-day period. If the index closes lower for three consecutive days, a trade is entered at the close of…
SPY is very mean revertive and RSI is a mean revertive indicator. Does this mean that RSI works on SPY? In this article, we test an RSI SPY trading strategy. It turns out that our hypothesis is correct: the RSI…
XLP Trading Strategies focus on mean-reverting assets, such as the XLP ETF, using the Internal Bar Strength (IBS) indicator. The strategy involves entering trades based on specific criteria, including low IBS values from yesterday and today, as well as RSI(5)…
You are going to learn Nasdaq trading strategies (Backtested) as well as how to apply them effectively. Investors often ask this while seeking to achieve better returns. Our guide strips away the complexity, offering you practical insight into the three…
Below is a potential short strategy in the S&P 500: Short= C>Ref(C,-1) AND Ref(C,-1)>Ref(C,-2) AND Ref(C,-2)>Ref(C,-3) AND ADX(5)>35 AND RSI(2)>90 Description: If the close is higher for the third time in a row, 5 day ADX is bigger than 35…
The failed bounce trading strategy: Rob Hanna at Quantifiable Edges had an interesting article some days ago about bounces in the S&P 500. Let’s test his idea and turn it into a testable hypothesis: (This article was first published in…
Below is a trading strategy backtested on SPY or the S&P 500: The classical mean reversion strategy in the S&P 500 In plain English the strategy reads like this: Trading Rules The equity curve since January 2000 looks like this…
An article about VIX trading strategies and explaining: what is the VIX and how does it work? The VIX is a fear index and shows the price you need to pay to get insurance in the stock market. In this…
Stock and sector rotation is when you switch between different asset classes or stocks. In this article, we look at different types of stock and sector rotations and why they make sense. In the stock market, we have momentum and…
Trend following the S&P 500 is probably not the sexiest thing to do. Back in 2012 Meb Faber published a paper called A Quantitative Approach To Tactical Asset Allocation in the Journal of Wealth Management. Meb Faber found the 200-day…
Larry Connors and Cesar Alvarez revealed a trading strategy called Double Seven in their book Short Term Trading Strategies That Work. This is a fairly simple system that at the time worked very well among a wide range of ETFs….
Volatility trading strategies can be very profitable. As an example, we show you an equity curve that only trades when volatility is above what is “normal”. We use a 200-day moving average as a filter for when we want to…
In a previous article, we presented an S&P 500 and gold rotation strategy. Today we test a sector rotation strategy between S&P 500 and gold miners. Let’s call the strategy an S&P 500 and gold miners rotation strategy. The logic…
The winter period, October to May, has historically been a very good period for US stocks for many decades. What is the country ETF performance per quarter? How has the stock market in other countries performed? This article looks at…
Thursday last week, the 4th of November 2021, was the fourth day in a row with a higher close than the previous close in the S&P 500. How often does this happen? Let’s test on the ETF SPY since its…
What are the Donchian Channels and do they work on stocks? The Donchian Channels were invented by Richard Donchian decades ago. They are still a popular tool for traders, but the markets have changed a lot since Donchian’s invention. The…
The Treynor Ratio, which is sometimes referred to as the reward-to-volatility ratio, was named after Jack Treynor, an American economist who developed it, who also happens to be one of the inventors of the Capital Asset Pricing Model (CAPM). But…
Developed by derivatives trader and statistician Lars Kestner, the K-ratio is a performance metric that tries to address the problem of how returns and consistency of returns are analyzed. Although the K-ratio has been around since 1996 — with some…
What is an auction market? An auction market can take many forms, but in this article, we look at auctions in financial instruments, like stocks, for example. An auction market is a platform for buyers and sellers to meet in…
Cutler’s RSI including backtest. The RSI is a very popular trading indicator among different security traders. But there are other variations of the RSI indicator. One of them is Cutler‘s RSI. You may be wondering what it is, and in…
When it comes to the major U.S. stock indexes, the S&P 500 index is widely regarded as a barometer of the overall stock market’s performance. Seen as an indicator of how large corporations are performing, it consists of the top…
Hindenburg Omen Indicator Trading Strategy: how do you use it and what is it? Stock market crashes can wipe out traders’ and investors’ profits or even put them at a huge loss in no time. If you have been in…
Derivatives are complex financial products that offer a wide range of benefits to those who understand how to trade them and do trade them. Both the flexible forward contracts and their standardized alternatives — futures contracts — provide investors with…
What is backwardation? Backwardation is a futures market condition where near-term contract prices exceed those for distant contracts, suggesting supply shortages. Derivatives are complex and hard to understand. However, they offer many benefits to those who understand them. Forward contracts…
There are different types of the harmonic chart pattern. The Bat pattern is one of the many harmonic patterns named after animals, but what is it? The Bat pattern is a simple XABCD harmonic pattern that consists of four price…
In the world of price action trading, there are different kinds of chart patterns, ranging from simple ones like triangles to the more advanced ones like the harmonic patterns. Are you wondering what the harmonic pattern is? In chart analysis,…
For many traders, a market with high volatility means more room for profit. There are many tools for tracking the volatility in the market, and the mass index is one of them. What is this mass index trading strategy? The…
The candlestick chart is very popular among traders because it is easy to visualize and makes technical analysis a lot better. Candlesticks can form shapes and patterns that can give traders a clue about how the price might move in…
The candlestick chart is useful for detecting small changes in price and trends. These changes often form patterns that can indicate trading opportunities. The Downside Tasuki Gap is one such pattern you should know about. Wondering what the Downside Tasuki…
Candlestick charts are used by traders for more efficient technical analysis due to the revealing patterns that often have predictive outcomes. The Dragonfly Doji is considered one of the most trustworthy of the various candlestick patterns. Let’s find out how…
Candlestick charts are popular among traders for their ability to simplify technical analysis with recognizable patterns that can indicate future market behavior. One such pattern is the Evening Star, known for its reliability. Let’s take a look at this Evening…
Risk management in stock trading involves taking steps to minimize potential losses. Many traders use the scaling-out strategy as part of their risk management approach, allowing them to lock in profits and reduce their exposure to potential market downturns. But…
Jesse Livermore’s trading strategy was based on the concept of “market trend analysis”. Livermore believed that stock prices move in trends and that it was possible to identify and profit from these trends. So, he used technical analysis to spot…
Ever since the 18th century Japan when the candlestick charting method was developed, it has been growing in popularity among technical traders, especially price action traders. One of the reasons for its popularity is the candlestick patterns with predictive value,…
The candlestick charting method, which originated in 18th-century Japan, has gained increasing popularity among technical traders, particularly those who utilize price action. The Falling Window candlestick pattern is a notable example of a highly valued candlestick pattern, due to its…
In markets with very low volatility, the price may not move much or even move at all in a trading session, giving rise to uncommon candlestick patterns, such as the Four Price Doji. As with many other candlestick patterns, it…
Candlestick charts are instrumental in identifying minor fluctuations in prices and trends, which frequently result in patterns that signal potential trading opportunities. Among the various candlestick patterns, the Gravestone Doji is considered a highly reliable indicator. Are you interested in…
The candlestick chart is useful for detecting small changes in price and trends. Candlesticks often form patterns that can indicate trading opportunities. The Hammer candlestick pattern is considered one of the most reliable of the various candlestick patterns. Want to…
Candlesticks are a popular visual representation of price action in trading. Traders use candlesticks to identify patterns and make informed trading decisions. The Hanging Man candlestick pattern is popular amongst traders as it is considered a reliable tool for predicting…
The Commitment of Traders (COT) report is a weekly publication by the CFTC that provides information on the open interest of markets in which 20 or more traders hold positions equal to or above the reporting levels established by the…
Candlestick charts are popular among traders for their ability to simplify technical analysis with recognizable patterns that can indicate future market behavior. One such pattern is the Ladder Bottom pattern, known for its bullish effects. Let’s take a look at…
Candlestick charts, introduced by Japanese traders in the 18th century, are very useful in technical analysis due to the recognizable patterns that often have predictive outcomes. The ladder Top pattern is a rare but unique candlestick pattern, known for its…
Its crucial to understand scalping vs day trading vs swing trading for investors with differing time availability and investment approaches. If you’re evaluating which method resonates with your financial aspirations, personal approach to trading, and available daily market engagement time,…
Quantitative trading vs algorithmic trading give traders the chance to make huge profits if they understand its difference. If you’re exploring the contrasting worlds of quantitative trading vs algorithmic trading, you’re in the right place. The crux of the matter…
Trading probability and the odds of a winning trade (calculator) can change the life and experience of a trader. Are your trading strategies backed by probability, or are you leaving success to chance? Understanding and applying trading probability is essential…
Trading Success hinges on skill, not chance. This article demystifies the exact methods behind successful traders’ consistency in profits. We’ll focus on the crucial strategies—from developing a winning mindset and risk management to adapting to market dynamics—that enable sustained trading…
Struggling with trades that miss the mark? Successful trading hinges on dodging a set of elusive pitfalls. This article dives into real trading failures that lead to losses and equips you with targeted strategies essential for market success. Navigate the…
When it comes to trading accidents, the question on every investor’s mind is: what went wrong and how can I avoid the same pitfalls? Trading accidents, marked by their abrupt disruption to financial markets, have occurred periodically throughout history, reshaping…
Trading precious metals has long been a popular choice for investors seeking to diversify their portfolios and hedge against economic uncertainties. Among the most coveted metals in this realm are gold and silver, each carrying its own unique characteristics and…
