Are you looking to refine your approach with advanced forex trading strategies or just starting out? This article offers a clear path to understanding and applying a variety of techniques suitable for all levels of experience. From foundational concepts to…
There are many skills and a lot of knowledge that one can gain which are applicable to more than one field. This can prove to be a time-saver, and lead you to become a sort of jack of all trades…
The uncertainty index measures economic policy uncertainty using news data. It’s critical for policymakers and economists to anticipate market reactions and manage economic volatility. Key Takeaways Understanding the Uncertainty Index Economic policy uncertainty is a term that often surfaces in…
Wondering how to succeed in NZD/CAD trading? In this article, you’ll find crucial tips and strategies tailored for the NZD CAD pair. We’ll explore key factors affecting its exchange rate, important technical indicators, and effective trading strategies to help you…
Representativeness heuristic bias in trading happens when traders make quick decisions based on superficial similarities to past situations or stereotypes, rather than thorough analysis. This shortcut often leads to poor investment choices and losses. In this article, we explore what…
The Dunning-Kruger Effect bias in trading can lead to overconfidence and costly mistakes. This cognitive bias causes novice traders to overestimate their abilities, ignoring risks and misinterpreting market data. In this article, you’ll learn how this bias impacts trading and…
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 patterns have any predictive value. We use candlesticks extensively ourselves for charting because we…
Curious about NZD/CHF trading? This guide will provide you with everything you need to get started, from market analysis to effective trading strategies. Learn how to trade the New Zealand Dollar against the Swiss Franc. Key Takeaways Understanding NZD CHF…
The Ultimo Effect is a fascinating seasonality pattern in the stock market that savvy traders use to their advantage. Observed during the final days of each month, the Ultimo Effect refers to a tendency for stock prices to rise as…
Projection bias in trading leads traders to project their current emotions onto future market conditions, often resulting in poor decisions and financial losses. This article explores how this bias influences trading and provides strategies to recognize and mitigate its impact….
Curious about how to trade GBP CAD trading effectively? This guide covers everything you need to know—from the best trading strategies and timing to key economic indicators that impact the GBP/CAD currency pair. Key Takeaways Importance of GBP/CAD in Forex…
Navigating the volatile financial markets requires a robust risk management trading approach to protect your investments and enhance profitability. The essential question for traders is how to balance the pursuit of gains with the imperative of shielding your portfolio from…
Transitioning a trading strategy from a backtest to live trading often yields unexpected results. While backtesting provides insights, it can’t fully predict real-world performance. This article details what can you expect from a trading strategy backtest when you are trading…
Herding bias in trading happens when investors follow the crowd rather than their own analysis. This can lead to poor investment choices and market instability. Recognizing and understanding herding bias is crucial for protecting your investments. In this article, we…
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…
Analysis of the financial markets today has become so much more scientific, as professionals from different fields of science try hard to solve the market puzzle, and this has led to indicators like the Prime Number Bands. What do you…
Looking for an effective GBP/AUD trading strategy? This article covers actionable strategies and key factors that influence GBP/AUD. Learn various trading approaches and tools designed for the GBP/AUD pair. Key Takeaways Understanding the GBP/AUD Currency Pair The GBP/AUD currency pair…
Looking for an effective GBP NZD trading strategy? This guide is for you. The GBP/NZD pair is known for its high volatility, offering numerous trading opportunities. In this article, we cover the key factors influencing this pair, various GBP NZD…
In the fast-paced world of financial trading, everyone is looking for better tools to improve their technical analysis, and one such tool is the High-Low Bands indicator. What do you know about this indicator? The High-Low Bands are two lines…
The financial markets may seem random in the way they move, but with certain technical analysis tools, like the Zigzag Fibonacci, you might find that the movements follow a certain pattern. What do you know about the Zigzag Fibonacci? In…
Is there a safe investment asset strategy? A while back, Meb Faber published a white paper called What Is The Safest Investment Asset. Faber wanted to answer if there is such a thing as the safest asset in the world….
The common belief is that large-cap stocks don’t perform very well because they are already big and they don’t grow at high rates. However, is this true? What is the large-cap effect (factor) trading strategy? In this article, we are…
In this article, we backtest Larry Connors‘ 3 day high/low Method/Strategy. How has the strategy performed since it was revealed in his book in 2009? The 3 day high/low method/strategy performed well in Connors’ book, and it still works pretty…
In May 2015, Micheal A. Gayed published a paper called Lumber: Worth Its Weight in Gold Offense and Defense in Active Portfolio Management (free download at SSRN). We used that paper to make a profitable lumber/gold ratio trading strategy for…
One of Warren Buffett’s investment advice is, “Be fearful when others are greedy and greedy when others are fearful!” That basically explains the contrarian trading strategy. The contrarian trading strategy is one that goes against the prevailing sentiment in the…
Energy sector trading is the process of gaining exposure to multiple stocks in the energy sector as a means of diversification and generating profits. Investment can be done by buying an ETF that tracks the sector or by building a…
Meb Faber’s Tactical Asset Allocation strategy is an active trend-following strategy that uses market timings and allocates assets across four asset classes: stocks, bonds, REITs, and commodities. These four asset classes are divided into five categories: U.S. stocks, foreign stocks,…
The exponential moving average strategy is one of the most commonly used among traders. But do you know what it is? And do you know if an exponential average strategy can be used profitably in the stock market? Backtests indicate…
A market-neutral strategy is a type of investment approach that enables an investor to benefit from both rising and falling stock prices. This is achieved by taking long positions in one stock and short positions in another stock. The strategy…
The Dow Theory is widely considered one of the earliest forms of technical analysis in the western world and has always been a very integral part of technical analysis since then. But what is the theory about? The Dow Theory…
The Utilities sector is known to outperform the S&P 500 index when there are market downturns, especially during periods of recession. Let’s take a look at the sector and discuss an example of an utilities trading strategy. Utilities trading strategies…
The information technology sector has the highest weighting in the S&P 500 index, representing more than a quarter of the index’s market cap. Over the last decade, the sector has been “hot” and had a spectacular bull market. In this…
The real estate industry group, previously stuffed inside the Financials sector, was elevated to a market sector level in 2016, making it the 11th sector in the S&P 500 index. Let’s take a look at the newest addition to the…
The advent of Artificial Intelligence is here, and is forecast to combine with and revolutionize many industries in the years to come. One such combined industry is ‘Robotics and AI’, and traders are increasingly seeking ways to position themselves to…
Variable moving average strategy backtest Traders have always looked for ways to improve the performance of the exponential moving average, and using a volatility index (VI) to adjust the smoothing period as market conditions change has given rise to the…
High Probability ETF Trading, published in 2009 and written by Larry Connors and Cesar Alvarez, contains some interesting strategies. They are all mean revertive and tested on the most popular ETFs at the time of writing, which was the end…
Golden Cross Trading Strategy 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…
The Weighted Moving Average (WMA) is a valuable technical indicator employed by traders to assess the direction of trade and assist in making informed decisions on when to buy or sell. This article looks at the math, theory, and basics…
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)…
When stock markets are oversold, we can expect strong returns over the next few days. But in the long term, returns gravitate toward the average returns. Thus, oversold stock markets only predict short-term results, not long-term. We do a backtest…
S&P 500 trading strategies can sharpen your market understanding. This article delivers straightforward techniques for trend, momentum, and volatility trading, providing the know-how for strategic market engagement. Understand when to enter and exit the market with strategies suited for different…
The dual momentum trading strategy by Gary Antonacci, what is that about? As the Oracle of Omaha, Warren Buffett, once said: “Trying to time the market is the number one mistake to avoid.” It is almost impossible to consistently time…
Hull moving average strategy backtest Experienced traders know that the best trading indicators are those that can reduce lag, eliminate noise, and quickly respond to sustained market changes. The Hull Moving Average (HMA) seems to tick those boxes. What do…
Of the many classifications a stock can have, one of the most significant is relative to its size. It is well known in the market that small caps tend to perform better than large caps, something called the small-cap effect….
Crafting a strategy that adapts to changing conditions is crucial for success. One such strategy gaining attention is the ETF sector rotation trading strategy. In this case, we are going to be focusing on the Consumer Staples and Consumer Discretionary…
Taking advantage of the popularity of Tradingview and its powerful tools for technical analysis, we will explore Bollinger Bands and their potential for creating a trading strategy. Stay with us until the end to see how we use the tools…
In the world of finance, geopolitical risk refers to the potential impact of geopolitical events on the economy and financial markets. Geopolitical events include wars, elections, political unrest, policy changes, trade disputes, terrorism, and other types of conflict or instability….
Dogs Of The Dow (DOD) Some investment strategies allow you to enjoy maximum dividend income, and Dogs of the Dow is one of such. But what does it really mean and how has it performed lately? Dogs of the Dow…
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…
Volume-weighted average price strategy backtest Several indicators are used for technical analysis; some of these indicators combine different market data to tell a better story about what the market is doing. The volume-weighted average price (VWAP), which combines both volume…
Italy is one of the most beautiful countries in the world, and it certainly has one of the best foods. However, they have struggled to grow their economy and, accordingly, their stock market. The Italian stock market is currently trading…
It’s possible to make Friday Jobs Report trading strategies. One of the most important macro numbers on this planet is the monthly US job report. As a bonus, at the end of this article, we provide you with the code…
This article shows a rotation strategy between healthcare stocks and the S&P 500. The trading idea is pretty simple, but it beats the buy and hold of the S&P 500. Moreover, we believe this strategy is more rational than at…
Does trend following work in the S&P 500? We recently came across an article called Breaking into the Blackbox: Trend Following, Stop Losses, and the Frequency of Trading: The Case of the S&P 500. It’s written by academics, but in…
Below we have a few selected End-Of-Day Trading Strategies. (EOD trading strategies) Since we started writing in 2012 we have presented over 200 free trading strategies, and we present a monthly trading edge for our paying subscribers (which you also…
With the tight regulations that followed the 2008/2009 financial crisis, this sector has been stable with steady growth. But let’s see what it has to offer. In this article, we discuss the US financial sector and we show you an…
Investors and analysts are always looking for ways to analyze the market, and one method of evaluating the current price of a stock to determine whether it is relatively overpriced or underpriced compared to the average trading price for the…
Bond trading strategies are a great inclusion in a portfolio of strategies because they offer diversification and, most likely, uncorrelated returns. Bonds are complementary. First, you might want to have a look at other articles related to bond trading strategies:…
Mean reversion trading strategies involve identifying assets that have deviated significantly from their historical average price or valuation and then betting on their eventual return or “reversion” to that mean level. Traders using mean reversion trading strategies anticipate that prices…
A Russell 2000 Death Cross occurs when the 50-day moving average of the Russell 2000 index crosses below its 200-day moving average. This is often seen as a bearish signal, but a new study by Rob Hanna on his blog…
Mean reversion has worked very well on most Western stock indices for about four decades since the advent of futures trading. It has worked even better during the bull market after the financial crisis in 2008/09. Perhaps counterintuitive, long strategies…
Today we want to delve into John Ehler’s Trading Strategy and an indicator created by this famous author to investigate financial instruments quantitatively. In August 2006, John Ehlers published an article in Stocks & Commodities titled Modeling The Market =…
Let’s look at at price pattern that shows that Tesla’s stock price booms every time this happens. It doesn’t happen often, but it has worked well so far: Tesla’s Stock Price Booms Every Time This Happens The trading rules are…
QQQ Trading Strategies and Systems The QQQ is the largest and most liquid ETF that tracks the Nasdaq Composite Index. It is a popular investment vehicle for both individual and institutional investors. However, successfully trading the QQQ can be challenging…
Yes, the turtle trading strategy still works today. It is a trend-following strategy, so it works in markets with clear trends. While the original strategy, which is based on identifying breakouts, still works reasonably well, traders have modified the turtle…
Triple exponential moving average strategy One of the not-so-common moving average indicators used by traders is the triple exponential moving average (TEMA). It is an important trend indicator used by traders to identify trends more closely than a traditional moving…
The 9/30 trading strategy is a trend-following strategy that uses two moving averages — a 9-period EMA (exponential moving average) and a 30-period WMA (weighted moving average) — to spot trading opportunities when there is a pullback. The 9-period EMA…
Triangular moving average strategy backtest Moving averages are the most common and useful technical indicators in forex trading, owing to their effect in smoothening out price movements and showing the actual direction of the trend. There are various types of…
What Does A Follow Through Day Mean In Trading? As a stock trader, you may likely have asked this question several times: “How do you identify a stock rally?” That might have been the question that led William J. O’Neil…
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…
One of the best edges in the stock market is the overnight edge – the price action from the close until tomorrow’s morning (or close). Is it still working? Can a trend filter improve performance? Empirical evidence – the overnight…
What happens in the coming days after a very bad Friday when the stock market goes down? Let’s backtest and find out if we can make any money from it. Friday 22nd of April was a very bad day in…
Gold is one of the most famous commodities in the world and is a great diversifier for those trading mainly stocks. However, its price has gone nowhere in the past decade, so we decided to test some strategies and try…
The utility sector has taken a major hit over the last couple of weeks. Below is XLU, the ETF that tracks the sector: But as you can see, it’s not the first time it has “collapsed”, but it has caught…
What are the worst days of the year for trading stocks? Let’s find out and test from the year 2000. We did a backtest where we optimized the month and trading day to find the WORST trading days for the…
Wheel Trading Strategy The wheel trading strategy is a popular options trading strategy that involves generating income from options by buying and selling puts and covered calls. It is a systematic approach to trading options, allowing investors to potentially generate…
In 2022 the bond market experienced the worst drawdown in its history, and since then volatility has been off the charts. It seems like rates are moving like tech stocks did in 2000. Luckily, this can be seen through the…
The channel breakout trading strategy is one of many ways to trade breakouts. Breakouts are a popular trading strategy. As the name suggests, this method involves identifying and capitalizing on significant price movements as an asset breaks free from its typical…
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…
IWM is the ticker symbol for iShares Russell 2000 ETF, which is one of the main ETFs that track the Russell 2000 index. The ETF provides a way to invest in the index and gain exposure to small-cap U.S. stocks….
Zero-lag exponential moving average strategy backtest (ZLEMA) The moving average is no doubt one of the most widely used technical indicators. While there are different traditional types, many variations are being created all the time to improve on the old…
Identifying core strengths, weaknesses, opportunities, and threats leads to fact-based analysis, fresh perspectives, and new ideas, which are the benefits of a SWOT analysis. SWOT analysis is a technique for assessing the performance, competition, risk, and potential of a business,…
The PENTAD Timing Model By Nelson Freeburg is an active, complicated strategy that uses four stock indices and one advance/decline line for producing buy/sell signals. This timing model is designed for the US stock market. Using this timing model, you…
Commodities, being closely tied to weather patterns and economic activity, exhibit high cyclical characteristics. Similarly, stocks also display cyclical tendencies. Given this, is there an opportunity to capitalize on their optimal performance? The commodities to equity ratio tries to do…
Stock indexes are widely used as benchmarks for tracking a basket of stocks within a particular sector or segment of the market. Investors use the indexes to assess the overall health of the sector, they compare the performance of their…
Simple Moving Average Trading Strategy revolves around the use of a simple moving average (SMA), which is a technical analysis tool that helps traders identify the direction of a market trend by averaging the closing prices of a security or…
You can develop and create profitable short-selling strategies and systems, but you can’t expect to find many; they normally trade infrequently. This article presents several short-selling strategies in the S&P 500 (SPY and ES) and consumer staples (XLP). Moreover, we…
In this article, we present some Larry Williams trading strategies. Larry Williams has marked his name in the register of successful traders. He has authored several books and is very popular in the trading industry. Born on 6th October 1942,…
Today we’ll present a strategy that we first wrote about some years ago – an article called big moves on Mondays – but we have made a small twist to the strategy. We call the strategy for the Big Reversal…
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 silver seasonal trading strategy where we invest only in the best-performing…
Volatility goes up and down in any financial market. Low volatility is often followed by periods of high volatility and vice versa. Bollinger Bands are one of the tools a trader can use to measure volatility. What is the Bollinger…
Investing in international stocks can be a rewarding venture, offering diversification and access to global opportunities. However, the decision to buy stocks when they are at all-time highs can be met with skepticism. But a question arises: Is it profitable…
The material sector is considered the primary producer in the supply chain because the companies here provide the raw materials used by other industries. Stocks in this sector tend to do well in a strong economy. However, the sector is…
New traders often think that there is that one indicator that would help them make big profits from the market all the time. Unfortunately, there is none, which is why the triple screen strategy was invented to exploit the strong…
When should you sell a stock or position? Many articles and videos deal with when to buy, but less focus is on when to sell. When should you sell? What method should you use to sell? What is the best…
The world of stock trading is a dynamic and ever-evolving landscape, where traders employ a wide array of strategies to capitalize on market movements. However, sometimes very basic strategies can perform really well. The 5 consecutive higher open trading strategy…
Introduction to the Z-Score Trading Strategy: The Z-Score is a statistical measure used in finance to assess a company’s financial health and its likelihood of bankruptcy. The Z-Score Trading Strategy employs this metric to make improved investment decisions. The Z-Score…
One often-mentioned expression in the financial markets is “risk on risk off”. What is it, and can you use it to develop a profitable risk on risk off trading strategy? A risk on risk off trading (RORO) strategy takes advantage…
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…
Here is a Tradingview Pine Script Strategy. TradingView is a popular tool with many traders due to its vast array of tools and features. TradingView uses its native code language, Pine Script, to implement indicators and backtest trading strategies. In…
