Historical Backtest – Quantify

There is a common saying that “he who fails to plan, plans to fail.” That is the case in financial trading. In fact, the difference between making money and losing money in the financial markets can be as simple as trading with a plan or trading without one. So, it is critical to have a…

The advent of electronic trading and the high-frequency trading bot that follows it meant that the financial markets have become too efficient to successfully trade them with discretionary methods. This is why algorithmic trading has been on the rise among retail traders. But while many traders aspire to become algorithmic traders, a lot of them…

Many traders only care about their entry strategies and don’t bother about their exit methods. One thing they failed to realize is that getting out of the trade is probably more important than getting into a trade. Even those who plan their profit targets often use fixed profit targets. But the moving target strategy may…

For most technical traders, the use of technical indicator strategy is a reliable way to trade the financial markets. Combined with the right risk management tools, it could help a trader gain more insight into price trends and forecast how the price might move in the future. Want to know about technical indicator strategy? A…

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 and how it works. What is a technical analysis strategy? Technical analysis strategy is the…

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 a stagflation, as of January 2023, if it were to come, do you have a…

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 trading properties. Want to know about the Shark harmonic trading strategy? The Shark harmonic trading…

While you might not have known it by its name, you would have fallen victim to the bear trap, especially if you love “calling the top” of a reversal trade. Have you ever tried entering a short trade thinking the bullish trend is losing momentum and the price of the security you’re trading is about…

Some traps are set for you in the market. Shocking, but it is true. Not all losses are a random hand of the market’s probability model, and some are carefully crafted to take your money away. You might find it challenging to wrap your head around why such a regulated industry as this traps traders…

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. Created in 1984 by the Frank Russell Company, the index is considered an indicator of…

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 from price fluctuations. Whatever the reason for trading, to trade it successfully, you will need…

U.S. Dollar Index futures offer an easy way to trade the U.S. Dollar Index (USDX or DXY), which is a measure of the value of the US dollar relative to a basket of the currencies of U.S. most important trade partners — euro, Japanese yen, British pound, Canadian dollar, Swiss franc, and Swedish krona. To…

The micro e-mini Nasdaq 100 futures is an inexpensive way to trade the Nasdaq 100 index — an index of the largest 100 non-financial companies listed on the Nasdaq stock exchange. At one-tenth the size of the popular E-mini Nasdaq 100 futures, micro e-mini Nasdaq 100 futures make it possible for small-cap retail traders to…

The micro E-mini Dow futures offer a cheap way to trade the Dow Index — an index of 30 top stocks listed on stock exchanges in the United States. At one-tenth the size of the popular E-mini Dow futures, micro e-mini Dow futures make it possible for small-cap give retail traders to gain exposure 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 best returns. Whether the assertion is true or not is up for debate, but one…

There are some indicators you can easily combine to get the best out of the market. The moving average convergence divergence (MACD) and Bollinger Bands combination is one of the best synergic indicator combinations. You can use it to trade both a range-bound market and a trending market, depending on how you use them. Ever…

Arbitrage trading seeks opportunities for low-risk profits. However, to make the most of this trading approach, you need to know some important things about arbitrage trading strategies. But what exactly are arbitrage trading strategies? A statistical arbitrage trading strategy involves buying and selling the same or similar asset in different markets to take advantage of…

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. You can trade them for speculation, hedging, or portfolio diversification. Want to know about 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 know about the soybean meal futures strategy? A soybean meal futures strategy refers to the…

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 staple food for people all over the world, its products, soybean meal and soybean oil,…

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 by the protective hull. Removing the hull gives brown rice, which is believed to have…

RBOB Gasoline futures are actively traded on commodity exchanges due to state legislation banning gasoline with MTBE. RBOB, short form for Reformulated Gasoline Blendstock for Oxygenate Blending, is a newer blend of gasoline that allows for 10 percent fuel ethanol and has become the new benchmark gasoline contract. Want to know about the RBOB Gasoline…

Orange juice OJ futures, also known as frozen concentrated orange juice (FCOJ) futures, has gradually gained popularity among soft commodity traders, despite its wild volatility and low liquidity. Launched in 1966, the contract enables orange farmers and orange juice producers to hedge their exposure in the market, but speculators are coming into the market to…

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 CME platform. If you want to successfully trade the contract, you must use the right…

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 diversify their portfolios into the commodity market, hedge risk exposures, or simply speculate on price…

The Nasdaq E-mini 100 futures contract is an electronically traded stock market index futures contract based on the Nasdaq 100 index — an index of the largest 100 non-financial companies listed on the Nasdaq stock exchange. The index is primarily made up of technology stocks and can be viewed as a barometer for the US…

With the S&P 500 index rising significantly over the years, the worth of the popular E-mini S&P 500 futures became out of reach to retail traders with small accounts. This prompted CME to create the Micro E-mini S&P 500 index futures contract, to make the market accessible to small-cap retail traders. But what is the…

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 the Americas, and first among Latin American currencies. Want to know about the Mexican peso…

Lumber is a key material for house construction, and lumber futures is the main method of trading this commodity. Used by builders, furniture makers, kitchen cabinet makers, and so on, lumber currently contributes more than $600 billion to the global economy, accounting for approximately 1% of the global GDP. With a huge chunk of this…