Healthcare Sector Trading Strategy (Example And Backtest)

Stocks in the healthcare sector are affected by various factors, but they tend to be recession-defensive because health is essential to life. In this article, we look at a healthcare sector trading strategy. The healthcare sector might add diversification to your portfolio of trading strategies. The reason is that many of the stocks in this…

Financial Services Sector Trading Strategy (Backtest And Example)

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 example of a financial services trading strategy. The sector is great for trading due to…

Inside Day Trading Strategy – What Is An Inside Day In Trading? Does It Work? (Backtest)

Frequently you can hear about an inside day, especially in the stock market. What is an inside day in trading? Is an inside day profitable? Can you use inside days as trading signals and develop inside day strategies? In this article, we explain what an inside day is and backtest several markets whether an inside…

Industrials Sector Trading Strategy (Backtest And Example)

As the name implies, this sector covers different industries that make use of heavy equipment and involves high-level engineering. In this article, we discuss what kind of stocks that is within the industrials sector and how you can trade them. Unfortunately, in the industrials sector it is a lot harder to find profitable trading strategies…

Turtle Trading Strategy: Rules, Statistics, and Backtests – Does It Still Work?

Turtle trading strategies are a trading approach named after Richard Dennis’ popular trading experiment in 1983. The experiment was to determine whether trading was an inborn skill or could be learned. The turtle trading experiment was a huge success, and the strategy employed by those traders was very successful all through the 1980s. But does…

Consumer Confidence And Stock Market Returns (Strategy And Backtest)

Consumer confidence tries to gauge the temperature of the economy. It swings from pessimism to optimism – just like Mr. Market who is rather manic-depressive. In the US it’s made by the Conference board and it casts doom and gloom on a monthly basis. Consumer confidence measures optimism (or lack of optimism – pessimism) in…

George Washington Day/President’s Day Holiday Effect In Trading (Backtest And Strategy)

George Washington’s Day/Presidents’ Day is one of the federal holidays in the US. But does it affect the US stock market? The US financial markets do not open on George Washington’s Day or Presidents’ Day. Trading does not take place on any of the U.S. stock exchanges. Backtests determine that trading around this holiday is…

70+ Trading Strategies (Free) – A List of Quantified Systems

On this page, we have compiled all the trading strategies (trading systems) we have published since our start in 2012 (plus relevant trading strategy articles). The page contains 80+ free trading strategies plus articles about indicators and trading strategy-specific articles. If you don’t want to browse through all the articles, we have compiled the code…

Nassim Nicholas Taleb – The Barbell Strategy (Options, Trading Strategies And Philosophy)

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 opinion Fooled By Randomness from 2001 is his best and most interesting book, at least…

Tail Risk Hedging Strategies – What Is It? (Tail Hedge Examples)

How can you hedge against huge losses from totally random and unpredictable events? How can you insure yourself from devastating losses that come out of the blue? This is what tail risk hedging strategies are all about. Tail risks in the stock market are hard to protect against, but in this article, we offer some…

Ray Dalio’s All Weather Portfolio (Backtest, What Is It, Returns, Performance) [Trading & Investment]

Ray Dalio’s All Weather Portfolio is a pretty well-known portfolio, and for good reasons, in our opinion. Ray Dalio and his team at Bridgewater Associates constructed the All Weather Portfolio to withstand every economic environment (and shocks) possible. What exactly is the All-Weather Portfolio? Which assets are included? How has it performed? What was the…

Uncorrelated Assets And Strategies – Benefits And Advantages (Non Correlated Examples And Backtests)

Uncorrelated or non-correlated assets and strategies are a traders’ goldmine. Why? Because it reduces risk and (might) increase returns. However, constructing a basket of stocks, assets, or strategies that are uncorrelated or non-correlated is probably the most difficult task in trading and investing. In this article, we show you examples and backtests of the power…

Do Stocks Outperform Treasury Bills? (Not What You Expected)

Hendrik Bessembinder, an academic, published a study in 2017 that went on to become widely spread and known. His hypothesis was pretty straightforward: do stocks outperform Treasury Bills? No, most stocks fail to beat one-month Treasury Bills during their lifetime as a public company, a fact we assume few investors expected or knew. Between 1926…

Gold Moving Average Strategy – Best Trend Following System for Gold Trading (Backtest and Statistic)

Gold Moving Average Strategy and Trend following systems work. Below we present a very simple trend following system in gold: In this article, we look at how you can use the 12-month (250-day) moving average to outperform the gold price. Gold spends most of the time going nowhere, and it seems the 12-month moving average does…

What Happens To Stocks When Bonds Go Up? (Trading Strategy Backtest)

Any stock investor or trader should have a basic understanding of the relationship between stocks and interest rates. Why? Because the interest rates influence investors’ risk appetite. When interest rates are high, you need to pay more for a company’s earnings (thus a lower PE ratio). What happens to stocks when bonds go up? When…

What Happens To Stocks When Bonds Go Down? (Trading Strategy Backtest)

The relationship between stocks and interest rates is at the center of financial theory. Why? Because the interest rates determine the value of stocks. High rates equal less appetite for owning risky assets, and investors will only own risky assets if they are compensated for taking this risk. What happens to stocks when bonds go…

Is Meb Faber’s Momentum and Trend-Following Trading Strategy in Gold, Stocks, And Bonds Still Working?

Meb Faber, a famous money manager and writer, has several times stated he is a trend follower at heart. Back in 2015, he published an article about momentum and trend-following strategy called Meb Faber’s Three-Way Model in gold, stocks, and bonds– a model that Meb Faber (Mebane Faber) found in some research from Ned Davis…

Are Covered Calls A Good Strategy? (Backtests And Examples)

Covered calls look tempting when interest rates and dividend yields are down because many investors and traders look for additional ways to generate “income”. Many pundits promise both good returns and “income” if you issue call options on your positions – so-called covered calls. Can you make money on covered calls? Are covered calls worth…

12 Reasons Why Trading Strategies Stop Working?

Why Trading Strategies Don’t Work In Live Trading. Trading strategies perform poorly in live trading mainly because of behavioral mistakes, curve fitting, survivorship bias, and improper trading size changes. It’s hard to replicate an unbiased backtest to live trading. If you have spent considerable time developing a strategy, it’s frustrating if it performs poorly in…

6 Pivot Point Trading Strategies – A Backtest | How To Trade With Pivot Points? (Definition, Analysis and Performance)

We have been investing and trading for about 21 years, but not until now have we ever looked at a pivot points trading strategy. We can read a lot about pivot points in certain media magazines and by stock commentators but have seen very little backtesting of any pivot point strategies. Below you find six…