Commitments of Traders (COT) – Backtest – How To Use It

The Commodity Futures Trading Commission (CFTC) publishes the Commitments of Traders reports every Friday at 3 pm US Central Time (CT). It releases the report to provide insight into market behavior for the benefit of the general public. What do you know about the Commitment of Traders report? The Commitment of Traders (COT) report is…

Channel Trading Strategies (Backtest – How To Trade It)

Channel trading can be profitable when used correctly. It can help you to track and speculate on the prevailing market trend, especially if you are a swing trader. But it can also be used in range-bound markets. Both mean-reversion traders and trend-following swing traders can make use of channel trading strategies. Let’s find out what…

Jesse Livermore Trading Strategy (Backtest And Performance)

Jesse Livermore was a legendary stock trader known for his exploits in the late 19th and early 20th centuries. He made and lost several fortunes in the stock market through speculative trades, utilizing his keen ability to read market trends and make bold moves. Livermore’s life story has inspired numerous books and movies, cementing his…

FOMC Meetings (Trading Strategies Backtest) – Stocks, Gold, And Bonds

FOMC meetings can have a significant impact on financial markets as decisions on interest rates made during these meetings can influence the direction of monetary policy and market expectations. Many traders look forward to them and trade the immediate volatility that follows such meetings. Want to know about FOMC meetings (trading strategies)? The Federal Open…

ECB Meetings (Trading Strategies Backtest) – Stocks, Gold, And Bonds

As with FOMC meetings, ECB meetings can have a significant impact on financial markets, especially forex and European stock markets. Decisions on interest rates made during these meetings can influence the direction of the EU’s monetary policy and market expectations. Many traders look forward to them and trade the immediate volatility that follows ECB meetings….

Scaling Out Strategy – Does It Work? (Backtest)

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 what exactly does the scaling-out strategy mean? Scaling out is a stock trading strategy where…

Bogleheads 3 And 4 Fund Portfolio – Backtest And Performance

Jack Bogle’s famous advice was to avoid searching for individual stocks, sectors, or markets that may perform better and simply invest in the entire market. This means using index funds to build a diversified portfolio. The Bogleheads 3 Fund Portfolio (global stocks, U.S. bonds) and Bogleheads 4 Fund Portfolio (global stocks, global bonds) are good…

Bernstein No Brainer Portfolio – What Is It? Backtest

William Bernstein is a former neurologist turned financial expert and writer. He believes, like many other successful investors, that index investing is better than selecting individual stocks and that how you allocate your assets is more crucial than choosing specific assets or timing your trades. He explains these concepts in depth in his debut book,…

Value Vs. Growth Strategy

Investors have a variety of options when it comes to investing strategies — Bond vs. Equity, Passive vs. Active, and Value vs. Growth strategy. Here, we focus on the two most popular strategies — Growth Investing and Value Investing. The two methods differ in many ways. Let’s find out. Value vs. Growth strategy is one…

The Magic Formula Strategy (Greenblatt) Backtest

The Magic Formula Strategy, popularized by Joel Greenblatt’s book “The Little Book That Beats the Market,” has received mixed reactions from the stock market. Some investors have reported positive results using the strategy, while others criticize it for lacking a solid theoretical basis and not taking into account company-specific factors. Let’s find out what the…

Rob Arnott Portfolio

Rob Arnott is the founder and chairman of the board of Research Affiliates — a giant in wealth management with $193 billion in assets under management. Research Affiliates is famous for publishing seminal research and investing based on that research. It created the Rob Arnott Portfolio. Let’s see what the portfolio strategy is about. The…

Harry Browne’s Permanent Portfolio

Harry Browne was an American investment advisor and financial writer. He was best known for his investment philosophy and strategies, which he outlined in several books. In his book “Fail-Safe Investing,” Harry Browne introduced the Permanent Portfolio as a way to ensure financial security. Let’s take a look at Harry Browne’s Permanent Portfolio. Harry Browne’s…

Frank Armstrong Ideal Index Portfolio (Backtest)

Frank Armstrong is a financial advisor, author, and the founder of Investor Solutions, a registered investment advisory firm based in Miami, Florida. With over 30 years in the financial industry, Armstrong has written several books on personal finance and investing, including “The Informed Investor” and “The Intelligent Asset Allocator”. He created the Frank Armstrong Ideal…

David Swensen Portfolio (Yale Endowment Fund/Model)

David Swensen was the President and Chief Investment Officer of Yale University endowment from the mid-1980s until his death in May 2021. Swensen, along with Dean Takahashi, invented The Yale Model. Let’s take a look at the David Swensen Portfolio (Yale Model). The David Swensen Portfolio is a diversified investment strategy developed by David Swensen,…

Ben Felix Model Portfolio

Ben Felix is a portfolio manager at PWL Capital in Canada, who is well-known for his YouTube channel, Common Sense Investing, and his podcast, Rational Reminder. He is widely recognized for his expertise in the field of investing and financial management and has created a model portfolio, the Ben Felix Model Portfolio. Let’s take a…

Warren Buffett Strategy – Does It Work? (Backtest)

Known as the Oracle of Omaha for his investment prowess, Warren Buffett is one of the most popular investors in the world. According to Bloomberg, Buffett has amassed a personal fortune in excess of $100 billion. Want to know about Warren Buffett’s strategy? Warren Buffett’s investment strategy is centered around finding undervalued companies with strong…

Unidirectional Trade Strategy – Does It Work? (Backtest)

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 unidirectional trading? Now, you are wondering what a unidirectional trade strategy means. A unidirectional trade…

ABC Trading Strategy – Does It Work? (Backtest)

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. Let’s take a look. The ABC trading strategy is a simple but effective pattern-based strategy…