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 the short squeeze in…
Slippage is probably the enemy number one for short-term traders. What is slippage in live trading and how much slippage can you expect to have in live trading? What is slippage in real trading? Slippage in trading is a hidden…
Pump and dump strategies are bad because they are mostly illegal but also immoral – legal or not. A pump and dump scheme benefits just a few “investors” and fraudsters. Stay away if you see a pump and dump. Don’t…
Trading performance and strategy metrics are important parameters to evaluate the quality of your trading strategy + both for your live trading strategy or if you are backtesting. Just looking at the end result, the CAGR or the annual returns,…
Many momentum oscillators tend to turn very positive at the beginning of a major advance and quickly enter the overbought territory or even show bearish divergence while the market is still advancing. The ultimate oscillator is a type of momentum…
There are many tools investors use to measure investors’ sentiment in the stock market, but the advance/decline indicator is one of the simplest ones. But what does the advance-decline indicator mean? Often referred to as the advance/decline index or advance/decline…
We were not able to 100% quantify a head and shoulders trading strategy. The formation is too difficult to put down into specific backtest rules. However, we were able to find some statistics done many years ago by Thomas Bulkowski…
Chart pattern recognition is one of the most popular techniques employed by chartists and technical traders; they constantly study and analyze price movements in hopes of detecting patterns that show the next most probable price movement. While there are many…
Many dreams of getting the hang of day trading and spending time in different holiday resorts while trading and drinking margaritas in the sun. However, you need to travel lightly and you can’t bring a big and heavy stationary computer….
There are many technical indicators out there that are not frequently used in everyday trading but can be useful for analyzing previous price actions to easily spot useful patterns and trends. One of such tools is the Zig Zag indicator….
If you are a fan of channel trading techniques, then you will definitely want to know about this old forgotten trading technique that projects potential support and resistance lines known as Andrews Pitchfork. You may be wondering what that is:…
In technical analysis, chart patterns are price action structures that can give a clue about how the price may move next. There are different kinds of chart patterns, and one of them is the ascending triangle pattern. The ascending triangle…
Spotting trends at the early stages can be a challenging task, but at least, you can trade the continuation if you know what to look for. Bull and bear flags are popular trend continuation patterns in technical analysis, but here,…
There are some very aggressive market strategies that seek to capitalize on very fast-moving markets. The Bump and Run chart pattern is one of such aggressive strategies that will help you spot the end of a trend and the beginning…
There are many harmonic chart patterns that traders use to spot potential price reversal periods, and the Butterfly pattern is one of them. But what is Butterfly harmonic pattern trading strategy? The Butterfly harmonic pattern is a retracement and continuation…
Although it is not one of the patterns described by H.M. Gartley or Scott Carney, the Cypher pattern is considered one of the harmonic patterns since it has a similar structure — with four swings and five swing points. But…
Named after H.M. Gartley who was the first to discover harmonic chart patterns, the Gartley pattern is one of the most traded harmonic patterns. But what is the pattern, and how is it used in trading? The Gartley harmonic chart…
As a technical trader, you must have encountered some chart patterns. They are an integral aspect of technical analysis, especially for discretionary traders. But what is a chart pattern trading strategy? A chart pattern strategy is based on recognizable shapes…
Some price patterns are more frequent in certain markets due to the volatility in such markets. Seen mostly on Bitcoin charts, the claw pattern is one such pattern. But what is the claw pattern trading strategy? The claw pattern is…
Traders are always looking for a way to follow the pulse and rhythm of the market and the harmonic patterns do just that. We know that the Crab harmonic pattern is one of the many harmonic patterns named after animals….
Learning how to accurately identify and analyze the double bottom chart pattern trading strategy can help you read market conditions and determine when to look for buying opportunities. But what is this double bottom chart pattern? The double bottom chart…
Chart patterns can help you understand the condition of the market. The double top pattern can warn you about a market peak, but do you know what it is and how to identify it? The double top chart pattern trading…
Lead futures offers an easy way to participate in the lead market, which is estimated to be worth over 30 billion dollars. Ever since humans discovered it long before 6500 BC, lead has been used for various purposes, including making…
With the global cattle market worth hundreds of billions of dollars and a huge chunk of that are traded via the futures market, live cattle futures offer a huge market for traders. However, there are fewer speculators trading cattle compared…
The Peso is the official currency of Mexico. On the foreign exchange market, the currency is denoted as MXN or Mex$. Although not a major currency, the Mexican peso futures are highly popular among traders, ranking tenth globally, third in…
Contributing nearly a third of world energy consumption, natural gas is the second most used form of energy in the world today. This is why natural gas futures are very actively traded on commodity exchanges, as investors use it to…
For a long, candlestick patterns have guided the decisions of traders. They still do so today. One of them is the Advance Block candlestick pattern. Today, we’ll discuss how to spot and trade the Advance Block on the charts. Advance…
Grown in Europe since the Bronze Age, oats are a species of cereal grain that is a major part of breakfast in many households around the world. Oats futures contracts are one of the popular soft commodity futures on the…
An RBOB Gasoline futures strategy is the technique and method you can use to profitably trade RBOB Gasoline futures contracts. RBOB Gasoline futures refer to futures contracts whose underlying asset is a specified quantity and quality of RBOB Gasoline. RBOB…
Rough Rice futures offer an easy way to participate in the rice market, which is one of the most consumed grains in the world. Also known as paddy rice, rough rice is the whole rice grain that is still covered…
Soybean has become one of the world’s most extensively cultivated commodities due to its versatility. As a result, the trading volume of soybean futures is now second only to that of crude oil, maize, and natural gas. Soybeans are a…
With high protein levels, amino acid balance, and overall nutrient content, soybean meal is the world’s choice for a non-animal protein supplement. Given the high demand for this commodity, soybean meal futures are actively traded on commodity exchanges. Want to…
A vegetable oil extracted from the seeds of soybeans and used as a cooking oil, soybean oil has numerous uses — in paints, printing inks, and insect repellants. As a result, soybean oil futures are actively traded on commodity exchanges….
Options trading in Apple Options trading in Apple gives traders the ability to speculate on the direction of the price of Apple shares in the future. Options are contracts that give the buyer the right, but not the obligation, to…
It is a common belief in the investment world that a market timing strategy does not work. And as such, there is no point in trying to predict the best time to buy or sell a stock to get the…
Trading agricultural commodity futures contracts, such as wheat futures, offers the opportunity to diversify your portfolio into the soft commodity market. Wheat futures can also be traded for hedging purposes or just speculation. For speculators, the goal is to profit…
The micro E-mini Russell futures offer cheaper access to the Russell 2000 index futures market than the e-mini version. Russell 2000 is a small-cap market index that is made up of the bottom 2,000 companies in the Russell 3000 index….
Are you tired of the endless debate about the Best Timeframe for Day Trading Strategies? Do the seemingly endless options leave you overwhelmed and unsure of where to start? Well, fear not! In this article, we’ll dive deep into the…
“Compound interest is the eight wonder of the world. He who understands it, earns it….he who doesn’t, pays it” -Albert Einstein Presumably, Albert Einstein said the words above, and likewise, Benjamin Franklin said that time is money. Unfortunately, we seem…
In Street Name Your capital is at risk when you are investing in equity markets, but I assume very few consider the broker as a potential risk. But the fact is that your capital might be at risk if the…
The US stock market is about 50% of the world’s stock market capitalization. If you want a diversified stock portfolio it’s pretty natural to include US stocks in your portfolio. The good news is that you as a non-US citizen…
If you are a harmonic pattern enthusiast, you will like to know about the Shark harmonic trading strategy. Released in 2011, the Shark pattern is one of the latest harmonic patterns described by Scott Carney, and it has some unique…
As inflation bit harder in 2022, one common theme in the media was whether the world was going to into a period of stagflation. Even the World Bank issued a warning in that regard. Although the world is not in…
If you are a price action trader, chart patterns, such as the symmetrical triangle, could be one of the best tricks in your toolbox. The pattern forms in all timeframes and can be used for any style of trading. However,…
Technical analysis strategy is a popular way of analyzing and forecasting price movements of financial assets such as currencies, stocks, commodities, bonds, and cryptocurrencies. While this strategy is as old as modern financial markets, not many know what it is…
The moving target trading strategy is a method of profit-taking whereby the trader allows the trade to run until the price shows a defined sign of a possible reversal. Here, the profit target is not based on a specific price…
The PowerX trading strategy is a momentum-based stock trading strategy developed by Markus Heitkoetter and described in his book, “PowerX Strategy 2nd Edition: How to Trade Stocks and Options in Only 15 Minutes a Day.” It is based on the…
With its convenient time zone, use of English, and feather-light regulations, London is considered the financial capital of the world, and the UK is easily the highest net exporter of financial services globally. When it comes to trading the financial…
How Do You Buy Chinese Stocks If You Are A Non-Chinese Citizen? Are you interested in investing in the Chinese stock market but don’t know where to start? Look no further! In this blog post, we will walk you through…
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The financial markets often show patterns where prices oscillate between one set of price ratios and another, making price projections possible. This is why some traders use patterns to formulate their trading strategies. The ABC pattern strategy is one such….
The US is the largest economy in the world and has the most vibrant and largest (by market cap) stock market on the planet. Many traders the world over want to trade in the US market. Want to know about…
Italy runs a highly developed social market economy that is primarily based on small and medium-sized enterprises. It is the third-largest national economy in the European Union and the 10th-largest in the world by nominal GDP. So, Italy has a…
Most traders are only familiarized with the concepts of directional trading (looking for trading opportunities in both up and down directions) and non-directional trading (market-neutral position). What if we tell you there is a third approach to trading, known as…
Cryptocurrencies are an emerging asset class, with huge volatility. Verge is one of the popular crypto coins you can trade with other cryptocurrencies. To trade it successfully, you must have a verge trading strategy. A Verge trading strategy is a…
The Japanese candlestick chart is very popular among traders not just because it is easy to visualize but also because the candlesticks can form shapes and patterns that can give a clue about how the price might move in the…
The Japanese candlestick chart is not only easy to visualize but also makes technical analysis better, as the candlesticks can form shapes and patterns that can give a clue about how the price might move in the future. One such…
The candlestick chart has been around since the 18th-century Japanese rice trading market. They can easily be used to visualize price changes, and a group of candlesticks can form patterns, which are very useful in finding reversals and continuation patterns…
The candlestick chart makes it easy to see the minutest of trends and pullbacks. Sometimes, these price movements create patterns, which, when recognized, can be used to spot trading opportunities in the market. The Bullish Three Line Strike is one…
Some traders study the price chart for patterns that can indicate the next direction of the price, and the Japanese candlestick chart is replete with many patterns. One such pattern is the Bullish Thrusting pattern. Let’s take a look at…
Traders use candlestick charts because they make technical analysis a lot easier, with patterns that have predictive effects. There are many types of candlestick patterns, but the Bullish TriStar Doji is probably one of the most reliable ones. Let’s take…
The Japanese candlestick chart offers a lot of patterns that may have some predictive value. Technical traders, especially price action traders rely on these patterns to spot trading opportunities in different financial markets. While some are common, many are rare…
Are you a fan of quants and statistical methods? If so, then quantitative analysis strategies may be the trading strategy for you. Analysts who use these methods rely on mathematical models to analyze data and make investment decisions. Quantitative investment…
Instrument/asset S&P 500 (SPY) Trading rules The trading rules of the edge read like this (please also backtest yourself – you might find a way to improve it): Today is an inside day; and Yesterday was a down day of…
Footprint trading strategy is a popular strategy used by traders to analyze and interpret order flow and volume data in financial markets. It provides valuable insights into the dynamics of buying and selling activities at each price level. In this…
Instrument/asset S&P 500 (SPY) Trading rules The trading rules of the edge read like this (please also backtest yourself – you might find a way to improve it): Open is higher than yesterday’s open; and Open is lower than yesterday’s…
Instrument/asset S&P 500 (SPY) and Gold (GLD) Trading rules The third Monday of January is a non-trading day since 1998 – Martin Luther King Day (MLK). It has been a holiday since 1986. The January MLK week has been weak. …
Instrument/asset Semiconductors (SMH) Trading rules The trading rules of the edge read like this (please also backtest yourself – you might find a way to improve it): The close is at least 0.5% higher than yesterday’s close; and TLT’s close…
Instrument/asset Semis (SMH) Trading rules The trading rules of the edge read like this (please also backtest yourself – you might find a way to improve it): Two days in a row where the low is higher than the high…
Instrument/asset Gold (GLD) Trading rules The trading rules of the edge read like this (please also backtest yourself – you might find a way to improve it): Results Below is the table if we hold for N days since GLD’s…
Instrument/asset Gold (GLD) Trading rules The trading rules of the edge read like this (please also backtest yourself – you might find a way to improve it): Today is an inside day; and The 5-day RSI is above 50; and…
Instrument/asset Gold (GLD) Trading rules The trading rules of the edge read like this (please also backtest yourself – you might find a way to improve it): Today is an outside day; and The IBS is lower than 0.4; and…
Instrument/asset S&P 500 (SPY) Trading rules The trading rules of the edge read like this (please also backtest yourself – you might find a way to improve it): Buy and sell at the close. Results Trading performance if exit after…
Quant trading has both pros and cons. In this article, we look at 8 pros and cons of quant trading. Even though we list both 8 pros and cons of quant trading, we believe the pros far outweigh the cons….
Which time frame is best in trading? We believe the best time frame in trading is daily bars. Every time frame has its pros and cons, but we recommend being agnostic and open for any time frame. You simply have…
The optimal capital allocation in trading is most likely not very well understood by most traders. The balance between attack and defense is often a thin line. Most of us are optimists and we rarely watch out below. It’s human…
The risk of ruin in trading is mostly ignored by traders. Most traders are optimists, but the difference between defense and attack is often tiny. What is the risk of ruin in trading? Can the risk of ruin in trading…
Since the emergence of the internet, algorithmic trading has come to dominate the financial trading world, but what percentage of trading is actually algorithmic? About 60-75 percent of overall trading volume in the U.S. equity market, European financial markets, and…
Algorithmic trading strategies are automated trading techniques that use computer algorithms to make decisions about buying or selling financial assets. These strategies rely on mathematical models, historical data, and real-time market information to execute trades with the goal of generating…
The internet is flooded with courses on how to get rich day trading penny stocks. If the penny stock market attracts you, you might want to have a penny stock day trading strategy. Day trading involves actively buying and selling…
Wall Street Cheat Sheet The only difference between a profitable trader and a non-profitable trader is how they control their emotions. While the latter always shows the right emotions at the wrong time (often leading to wrong calls in the…
Have you ever wondered how to trade in financial markets using trading signals and an automated trading system? Without being influenced by emotions and biases, you can rely on metatrader and algorithmic trading software. Autotrading is the solution you’ve been…
Instrument/asset S&P 500 (SPY) Trading rules The trading rules of the edge read like this (please also backtest yourself – you might find a way to improve it): The lowest range over the last 3 days; and Today is an…
Instrument/asset S&P 500 (SPY) Trading rules The trading rules of the edge read like this (please also backtest yourself – you might find a way to improve it): The trading edge behaves slightly differently depending on the close in relation…
Instrument/asset S&P 500 (SPY) Trading rules The trading rules of the edge read like this (please also backtest yourself – you might find a way to improve it): The lowest volume over the last 10 days; and The close is…
Instrument/asset S&P 500 (SPX) Trading rules The trading rules of the edge read like this (please also backtest yourself – you might find a way to improve it): Today is Tuesday in Thanksgiving week; and Exit on Black Friday. Results…
Instrument/asset S&P 500 (SPX) Trading rules The trading rules of the edge read like this (please also backtest yourself – you might find a way to improve it): Today is the highest close in 25 days; and It’s the lowest…
Instrument/asset S&P 500 (SPY) Trading rules The trading rules of the edge read like this (please also backtest yourself – you might find a way to improve it): Today is the lowest range in 3 days; and The 5-day RSI…
Instrument/asset S&P 500 (SPX) Trading rules The trading rules of the edge read like this (please also backtest yourself – you might find a way to improve it): The lowest volume over the last 10 days; and Ends on a…
Instrument/asset S&P 500 (SPY) Trading rules Yesterday, the following trading rules kicked in: (The trading rules of the edge read like this (please also backtest yourself – you might find a way to improve it)): Close must be lower 7…
Instrument/asset S&P 500 (SPY) Trading rules The trading rules of the edge read like this (please also backtest yourself – you might find a way to improve it): Buy at the close of the last trading day of the month….
Instrument/asset S&P 500 (SPY) Trading rules The trading rules of the edge read like this (please also backtest yourself – you might find a way to improve it): Results Trading performance if exit after N-days: Improved Trading Edge We add…
Many people have a dream of having a computer that trades for them so that they don’t have to care for the order execution or anything else trading related. While no such trading exists, algorithmic trading comes very close, and…
If you ever have wanted to have a computer that takes care of the trade execution for you, you have probably looked into algorithmic trading. Being used by many big trading firms, as well as retail traders, algorithmic trading is…
Modigliani Modigliani (M2) risk-adjusted performance is used to compare the performance of investment portfolios. It’s frequently referred to as M2. This measure extends beyond traditional metrics by adjusting returns for risk, offering a percentage-based view that aligns with a benchmark’s…
R-squared is a statistical measure that indicates the extent to which data aligns with a regression model. It quantifies how much of the variance in the dependent variable can be accounted for by the model, with R-squared values spanning from…
The information ratio is a key metric for assessing investment performance against a benchmark. It tells investors how much excess return is achieved per unit of risk. It’s one of many performance metrics in trading and investing. The relevant question…
Candlesticks are some of the most popular solutions to chart the price of a security. With their colorful bodies and long wicks, they make spotting candlestick patterns much easier. One such candlestick pattern is the upside gap two crows. Upside…
Whether you trace the origin to the 19th century American Charles Dow, who created the DJIA Index, or the 18th century Japanese Homma Munehisa, who invented the candlestick Pattern chart, technical analysis has got a rich history. And traders will…
