Day Trading Strategy — What Is It? (Backtest And Example)

In the past, the only people who could trade actively in the stock market were those working for large financial institutions, brokerages, and trading houses. That is no longer the case today, as many individual traders make a living day trading stocks or futures. But what exactly is a day trading strategy? A day trading…

Institutional Trading Strategy — What Is It? (Backtest And Example)

Trading securities can be as simple as clicking the buy or sell button on your trading device, and the trade orders get executed. While that may be true for retail trading, it may not be so for institutional trading which requires a lot of tact and planning. But what exactly is an institutional trading strategy?…

Macro Trading Strategies — What Are They? (Backtest)

“If trading is like chess, then macro trading is like three-dimensional chess. It is just hard to find a great macro trader.” — Paul Tudor Jones. Many of the world’s biggest hedge fund managers and institutional traders focus on macro strategies. What are macro trading strategies? Macro trading strategies are investment strategies that pick their…

Carry Trade Strategy — What Is It? (Backtest)

If you are active in the financial markets, you may have heard of carry trade, especially in currency trading. It is becoming increasingly popular among retail traders. But what does the carry trade strategy mean? A carry trade strategy involves borrowing at a low-interest rate currency and converting the borrowed amount into another currency with…

Martingale Trading Strategy (Backtest And Example)

There are different strategies for trading the market, such as trend following, price action, scalping, momentum, Martingale, mean-reversion, and so on. All are risky, but the Martingale trading strategy is known for its huge risks. What is this strategy and how does it work? In financial trading, the Martingale trading strategy refers to the idea…

European Trading Strategies (Backtest)

With the world getting increasingly connected online and many regions opening up their financial markets to the global investing community, it is now easier to diversify your investment portfolio into other economies. And the European market is an easy choice for portfolio diversification. But what are European trading strategies? There are different ways to gain…

Forex Trading – 12 Reasons Why You Should Avoid It (Warning)

We have in a number of Tweets, posts, courses, and articles mentioned that the stock market offers the “lowest-hanging fruit” in trading. The reason is simple: We believe you can develop more robust and profitable trading strategies in stocks than in any market, and forex should mostly be avoided. One of the markets we find…

Should You Buy Or Sell Stocks In A Volatile Market? (Backtest With Historical Data)

Volatility and bear markets are related: volatility “always” picks up when the market goes down. Is this good or bad for a trader or investor? Should you buy or sell stocks in a volatile market? Let’s find out: Short-term traders should continue doing business as usual. Long-term investors should buy – not sell. Very few…

CTA Trading Strategy — What Is It? (Backtest)

The commodity market is highly specialized and requires specialists in the game for investment advisory and management. This is where CTAs come in, but who are they? A commodity trading advisor (CTA) is an individual or organization that provides personalized advice and services related to trading in futures contracts, commodity options, and retail off-exchange forex…

Alexander Elder Trading Strategy — The Triple Screen Strategy (Backtest And Example)

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 points of different categories of indicators. But what is the triple screen strategy? The triple…

Rubber Band Trading Strategy — What Is It? (Backtest)

As Warren Buffett rightly said: “You need to be fearful when others are greedy, and greedy when others are fearful.” This perfectly applies to the Rubber Band trading strategy, but what is it? The Rubber Band trading strategy is a simple but powerful contrarian/mean-reversion strategy for trading stocks, which is easy to understand and easy…

The 60/40 Strategy Portfolio – Is It Dead? (Backtests, Alternatives, And Substitutes)

Determining the right mix of assets to help you reach your short-term and long-term financial goals is the key to building a winning investment portfolio. For many years, financial advisors and experts recommend the 60/40 portfolio because of its simplicity and favorable risk-adjusted returns. But given the changing economic situations in 2022 and the 60/40…

Biotech Sector Trading Strategy — What Is It? (Backtest And Example)

Considered a part of the technology sector, biotech stocks represent an important part of the Nasdaq market, and they tend to have big growth potential. But what are biotech stocks? Biotech is an industry group that includes companies that research and develop drugs, wearable medical gadgets, and other diagnostic technologies for the treatment of diseases…

Expiry Trading Strategies (Expiry Strategy Backtest)

It’s a well-known fact that as options expiry day approaches, the biggest-cap stocks with actively traded options tend to witness huge trading volumes (and sometimes increased volatility). In fact, the most important day in stock trading is the expiry day. But what is expiry in options trading? In options trading, an expiry time (or expiration…

China Trading Strategy (Backtest – FXI Strategy)

Globalization has made it possible for investors to tap into investment opportunities around the world, and as the second largest economy in the world, the Chinese stock market provides opportunities. But what is your China trading strategy? You can also trade Chinese stocks listed on Chinese exchanges, especially the Hong Kong Exchange. However, you would…

Bear Market Trading Strategy — What Is It? (Backtest And Example)

The financial markets always cycle between bull and bear markets. If you want to trade the stock market, you should know how to play both market conditions. So, what is a bear market trading strategy? Bear market strategy refers to the techniques traders and investors use to trade the market during a bear run. They…

Rate of Change Indicator Strategy – What Is It? (ROC Strategy And Backtest)

Traders often look for ways to measure the price momentum. The rate of change (ROC) is one of the most commonly used indicators for that. Let’s take a look at the indicator. Often referred to as the momentum indicator, the rate of change (ROC) is a momentum-based technical indicator that compares the current price of…