Stock and sector rotation is when you switch between different asset classes or stocks. In this case, between different asset classes. We did a backtest involving SPY, TLT, and LQD. It’s a strategy backtested by many and in different ways,…
Introduction: Understanding Dumb Money in Trading The term “dumb money” in Dumb Money trading strategy refers to a group of investors who are considered to be less sophisticated or experienced than other participants in the market. These investors may make…
The Gold Stocks Strategy, revolving around GDX (Gold Miners), suggests buying if GDX rises by more than 0.1% from open to close and selling short if it rises similarly the day before. With results showcasing profits of 273.27% and 185.97%…
Stock market crash trading strategy. Volatility is a normal thing in the stock market — the prices of individual stocks and market indexes fluctuate all the time. But there are times when volatility is to the extreme, giving rise to…
The high-frequency trading strategy is a method of trading that uses powerful computer programs to conduct a large number of trades in fractions of a second. It is a type of algorithmic trading strategy that uses high speeds, high turnover…
Most price charts are time-based in the sense that a price bar represents price movement over a specified period of time. However, there are other chart types that are not based on time but, rather, on a specified price movement…
This article presents a stock trading system that only trades stocks. It has beaten buy&hold and (10.4% vs 7.5%) with a much lower drawdown. This is the equity curve and the complete trading rules are presented further down in the…
Interested in spread trading? It’s a strategy where traders open opposing positions in related markets, aiming at profits from the price gap. Our article takes you through 12 top strategies for spread trading, covering the essentials and diving into advanced…
Pair trading strategies with Exchange-Traded Funds (ETFs) are gaining traction among traders seeking to mitigate exposure to market fluctuations. While many traders primarily focus on individual stocks, ETFs offer a diversified approach to trading various segments of the stock market….
Sweden has a vibrant stock market, with many interesting companies like AstraZeneca, Atlas Copco AB, and Ericsson. You can track the performance of the Swedish market with the OMX Stockholm 30 and OMX Stockholm PI indexes. OMX Stockholm PI is…
In today’s computer-driven, fast-paced market, monitoring the limit order book may help you predict price movements. But what is the limit order book trading strategy? The limit order book trading strategy is based on the order flow. The limit order…
Because of its potential for quick profits, the short-term trading strategy is the most popular trading method among retail traders. Unlike traditional long-term investing methods, this strategy offers an exciting opportunity to profit from relatively minor changes in market conditions….
In a previous article, we highlighted the difference of changing the entry method: entry on the next day open (1) vs. entry on the same day close (2) vs. entry on the next day with a limit order (3). For…
What does gold trading mean and what about Gold Trading Strategies? Gold, along with crude oil, is one of the world’s most widely traded raw materials. It is undoubtedly the most popular precious metal, both financially and culturally. Gold Trading…
Why trade the DAX index and a DAX trading strategy? The DAX index is the main equity index in Germany. It’s one of the most popular trading vehicles in the whole world and has a tremendous daily volume. Because of…
You must have heard the stock market adage: “Buy low and sell high.” It is possibly the most popular slang in stock trading. Buying at the all-time low may be a perfect way to implement the adage, but does it…
Different order types can result in vastly different outcomes, which is why it is important to understand the type of order you use. If you want your order to be filled at your specified price, go for a limit order….
A small account trading strategy refers to the trading methods and risk management approach a trader can apply to grow a relatively small account. Starting trading with a small account means having to use leverage and making fewer trades. Thus,…
If you have a potential trading strategy, which market are you going to backtest it on? And what do you do if it works on S&P 500 but not so well on Russell 2000? This article uses the same trading…
Here are 20 soft commodities trading strategies you are going to learn. For those trading soft commodities like sugar, cotton, and coffee, a strategic edge is key. This article explores effective soft commodities trading strategies, offering insight into market analysis,…
Penny stocks offer a low entry and often the lure of striking it big. The internet is full of stories about how you can make millions and gain thousands of percent of returns in penny stocks. Is it any reality…
There are certain trading strategies that you can trade based on price action alone. One of them is the HHLL trading strategy. You may be wondering what the HHLL trading strategy is. Here you go: The HHLL trading strategy is…
Hedge funds employ many investing strategies, and the long-short equity strategy is one of them. But what does this long-short equity strategy mean? Long short equity strategy is a method of investing whereby a trader takes long positions in stocks…
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…
Mean reversion strategies come with their own set of advantages and disadvantages relative to trend-following strategies. However, just as when implementing a trend-following strategy, knowing the statistical behavior of your asset is of vital importance when it comes to mean…
A Fair Value Gap (FVG) trading strategy involves identifying and capitalizing on price jumps caused by imbalanced buying and selling pressures in the market. These gaps, also known as Price Value Gaps or Singles, occur when the supply of buyers…
Smoothed moving average (Wilder’s) strategy backtest The smoothed moving average is not as common as other moving average indicators, but you will come across it in your trading journey. So, it’s good to know what it means. Can a smoother…
“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…
Some people hold their trades for short periods, even as little as a day, while others hold theirs for quite a long time. While the former is known as short-term traders, the latter are called long-term traders. But what does…
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…
A pullback trading strategy is a trading strategy that involves buying a stock after it has experienced a recent decline in price. The rationale behind this strategy is that the stock is likely to rebound from its recent decline and…
Data-driven trading strategies harness numbers to predict market trends with precision. This article unpacks these strategies, showing you how to analyze and use data to make informed decisions that could help to maximize profits and minimize risks. Explore how to…
Adaptive moving average strategy backtest (Kaufman’s adaptive moving average) We know that traditional moving averages smoothen price series to reduce noise and show the trend. However, when price makes a temporary but significant leap, it can still give the appearance…
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…
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…
Nikkei 225 futures, which is based on the Nikkei 225 stock market average, provide investors around the globe with an efficient way to access the opportunities of the Japanese equity market, one of the world’s largest markets. Created in 1950,…
There are many indicators or patterns that try to predict whether the stock market is going to crash or rise. Today we will be looking at one that generated few signals over the years, but anticipated major bear markets. It’s…
Fractal adaptive moving average strategy backtest Many new forms of moving averages have been created, but not all of them are easy to calculate. The fractal adaptive moving average is one of those unique moving averages, but it offers great…
Market crashes and recessions can be opportunities for long-term investors to buy assets at bargain prices. Market participants call the approach “buying the dip.” But what does it mean to buy the dip? To buy the dip means to purchase…
Meme stocks seem to be on everyone’s mind recently, with constant mentions in market summaries and analyses. These stocks gain traction on social media platforms, such as Reddit and Twitter (please follow us on Twitter), often sparking lively debate. While…
The micro E-mini Nasdaq 100 futures strategy is the method or technique that you can use to trade the micro E-mini Nasdaq 100 futures profitably. Micro E-mini Nasdaq 100 futures are a type of electronically traded Nasdaq 100 futures that…
Volume Profile is a trading indicator that displays the volume traded at different price levels over a specified period of time. It provides valuable insights into the distribution of volume across different price levels, helping traders understand the levels where…
What is the best swing trading strategy? Is swing trading still profitable with positive returns? We have summarized 10 free swing trading strategies that might help you start your trading career. The internet is flooded with anecdotal evidence about how…
The Russell 2000 Rebalancing Trading Strategy is a method that takes advantage of the abnormal outperformance of the Russell 2000 index during its annual rebalancing at the end of June. Traders buy on the close of the first trading day…
Why trade the Euro Stoxx 50? The Euro Stoxx 50 is one of the world’s most popular equity indexes to trade. Because of its popularity, a new Mini futures contract has seen the day of light to make it more…
Double exponential moving average strategy backtest Traders are always looking for an edge in the market. While some employ the use of chart patterns, others simply trade based on indicators. An example of such an indicator is the double exponential…
Did you know that closed-end funds (CEFs), a category of investment instrument, have existed for more than a century? Because of its long history, closed-end funds are a popular investing vehicle. But did you know that you can also make…
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 kinds of stocks are within the industrial sector and how you can trade them. Unfortunately,…
Looking to profit from gold, oil, or other hard commodities? Success hinges on robust hard commodities trading strategies. This article cuts through complexity, offering practical, actionable strategies for trading hard commodities. You’ll learn to leverage market dynamics and manage risk,…
The S&P 500 Index is categorized into 11 sectors, and investors try to profit from the various sectors. One simple way to profit from the market is the sector trading strategy. But what is sector trading strategy all about? This…
Navigating through the vast array of trading strategies to discover one that aligns with your financial journey can be overwhelming. This guide simplifies the process, enabling you to compare various trading strategies side by side and uncover their unique attributes….
Let’s take a look at the semiconductor industry and an SMH Trading Strategy. The semiconductor industry is the backbone of the tech revolution of the past decades and stocks in the industry dominate the IT sector of the S&P 500….
These 10 different crude oil trading strategies can help you make money. This article provides methods for timing trades, incorporating market data, and managing risk. Learn about crude oil trading with confidence and set another successful example for others. Crude…
Since its birth in the 1980s, derivatives trading has opened up a world of markets for traders who want to profit from the price movements of various derivatives. To succeed in this market, you must have a derivatives trading strategy….
You may have seen the Gann Fan in your trading platform and be wondering how to use the tool for trading. Well, you are not alone; many want to know the Gann fan trading strategy. The Gann fan trading strategy…
If you have been trading or just following the gold and silver markets, you must have heard about the gold-silver ratio. What does the gold-silver chart ratio strategy mean? The gold-silver chart ratio strategy is a technique for trading the…
Previously we have written about the Turnaround Tuesday Strategy and the Monday/Tuesday trade strategy in Nasdaq (QQQ). How has this strategy performed lately? Pretty good. I’ve been trading this strategy, with these trading rules: Trading Rules This is all there…
Sell the rip refers to a trading strategy that aims to sell an asset (either closing an open long position or opening a short position) when its price has risen to a level considered overvalued. This investment approach follows the…
Below is a simple and easy trading strategy to implement in QQQ. Let’s go straight to the trading rules: Trading Rules The equity curve since January 2000 looks like this (starting with 100 000 in equity and allocating 100% of…
Intraday trading is one of the most exciting but, at the same time, the most demanding form of online stock trading, and the OHL trading strategy helps you focus on the most important aspects of the trading day. As a…
Since 1993, all the gains in the S&P 500 have come from owning the index from the close to the open the next day. We see the same tendency in the gold markets. Thus, we can develop night trading strategies…
Agriculture futures offer a vast array of hedging and speculative opportunities, and Corn is one of the most highly traded commodities globally. Also known as maize, corn is widely cultivated in countless varieties throughout the world. Corn futures trading requires…
An unfilled gap trading strategy happens when all the price action today is either lower than yesterday’s low (gap down) or higher than yesterday’s high (gap up). They are also profitable if we base our buy signals on additional criteria….
A Dow Jones futures strategy is what to use to trade the DJIA futures market. DJIA futures refer to financial derivative products that represent a contract to buy or sell a specified amount of the Dow Jones Index on a…
Why trade the XLU and utility stocks? Even though utility stocks are probably one of the most boring stocks, they offer diversification. In this article, we discuss the consumer staple ETF XLU, why it’s a great trading vehicle, and why…
One of the most frequently traded futures contracts, the E-mini S&P 500 futures tracks the popular S&P 500 index, which is an index of the 500 biggest stocks in the US stock market. Just as the S&P 500 index is…
Geometric moving average strategy backtest There are different ways of getting the moving average of a time series. While the simple and exponential methods of calculating the moving average are more common in the trading world, it is also possible…
This article compares price action trading with indicator-based trading, exploring the differences between the two approaches. It highlights the importance of understanding price movements and using technical indicators effectively. By analyzing the pros and cons of each approach, traders can…
Guppy multiple moving average strategy backtest Trend traders are always looking for trading opportunities by analyzing the price chart. This includes spotting a trend early as well as knowing when a reversal is about to occur. Interestingly, the Guppy Multiple…
What is an Order Block? An order block is a term used in trading to describe a specific price area on a chart where significant buying or selling activity has occurred. It represents a consolidation of orders, creating a temporary…
McGinley Dynamic Indicator strategy backtest Different types of moving averages are used in technical analysis. However, the McGinley Dynamic indicator stands out for its attempt to solve a problem inherent in moving averages that use fixed time lengths. It’s a…
An index rebalance trading strategy is a trading strategy that seeks to exploit the price movements of stocks that are being added to or removed from a major market index. Index funds, which are passively managed funds that track a…
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…
A Market structure trading strategy involves analyzing and interpreting various elements that shape price movements, such as swing highs and lows, support and resistance levels, and trendlines. Many traders use market structures to pinpoint lows and highs. In this article,…
An Over-The-Counter (OTC) trading strategy involves trading financial instruments directly between two parties without the use of a centralized exchange. OTC trades occur in decentralized markets, often through dealer networks, enabling flexibility with customized contracts and conditions. Commonly used for…
Merger arbitrage is a specialized trading strategy that seeks to capitalize on price differentials between a target company’s stock price and the offer price during a merger or acquisition. This strategy involves taking advantage of market inefficiencies created by the…
You are going to learn everything about grid trading strategies here. For those looking to harness the natural ups and downs of market prices through a methodical, hands-off methodology, look no further than grid trading strategies. This complete guide is…
There are different approaches to trading. While some want to get in and out of the market within the same day, there are those who want to leave their trades on for as long as possible to milk all the…
Traders love to use technical indicators to generate signals and try to earn superior returns. One of those indicators is the VIX, which we will be using today. Let’s look at SPY strategies for volatile markets utilizing the VIX threshold….
14 agricultural commodities trading strategies will guide you in handling profits in uncertainty. How do you understand market trends and manipulate risk in your favor? This no-nonsense guide teaches you straight into the strategies for commodities such as corn, wheat,…
Stock trading in Apple’s stock AAPL is a popular investment strategy that involves buying and selling shares of publicly traded companies with the aim of generating profits. One of the most well-known and widely traded stocks is Apple Inc. (AAPL),…
Finding a bottom timing trading strategy for the stock market is one wet dream for many traders. Unfortunately, only a few manage to nail the exact bottom. We suggest another type of strategy: We find that buying the S&P 500…
You are going to learn the best silver trading strategies for 2024 here. This article gives you the key tactics you need, from leveraging silver’s market trends to implementing tight risk controls. Step into the field of silver trading with…
What are options trading in META? Options trading is an investment strategy where investors purchase contracts to buy or sell a specific asset at a predetermined price on or before a specified date. Investors use options to speculate on future…
The Copper/Gold ratio trading strategy seems to offer good entry points for both copper and gold. We backtest the ratio and find positive results for the next one to 12 months after a signal is triggered. Copper and gold are…
Precious metal trading strategies hinge on understanding market trends and leveraging diverse tactics. This guide empowers you with the strategies you need for trading gold, silver, platinum, and palladium, helping you create a resilient approach in a fluctuating market. Here,…
ChatGPT trading strategies are strategies generated with the help of the ChatGPT AI that is currently taking the world by storm. The AI can help you create technical indicators, AI trading strategies based on specified indicators, and even trading algos,…
In this article, we are going to show you a signal that has a 16% to 20% average return in the SPX a year after it is triggered and hasn’t failed since 1941. It’s called the end of bear market…
Starting to trade but unsure where to focus? In this beginner’s guide to trading strategies, you’ll explore essential tactics tailored for those just entering the market. We’ll break down accessible strategies, from understanding market fundamentals to executing your first trades…
Japan is the third largest economy in the world. It is a major player in the global financial markets, with a well-developed system of stock exchanges and a large securities industry. Day trading and swing trading thrive in Japan, so…
The 13/48 trading strategy is a technical analysis method that uses moving averages to identify potential trading opportunities. The strategy is based on the idea that when the 13-period exponential moving average (EMA) crosses above the 48-period EMA, it is…
The Aroon Indicator is a technical analysis tool designed to signal trend changes and measure the strength of trends. It relies on two components, Aroon Up and Aroon Down, to identify when new highs or lows are reached, helping traders…
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….
What are the Key Drivers of NVDA’s Stock Price? NVIDIA Corporation (NVDA) is a major player in the graphics processing unit (GPU) market, and several key factors drive its stock price: How Does the Semiconductor Industry’s Cycle Affect NVDA Trading?…
Ever wonder how Jack Bogle’s investment strategy, known as the “Jack Bogle Investment Strategy,” could impact your financial future? By focusing on purchasing low-cost index funds and holding them over time, Bogle’s approach advocates for a disciplined and cost-effective way…
Today we will look at a strategy that saw the day of light nearly 60 years ago. The somewhat cryptic name is the Coppock Curve. What is the Coppock Curve strategy about? The Coppock Curve Strategy was devised by economist…
What is the The Magnificent Seven? The Magnificent Seven stocks are a group of seven large technology-focused companies that have been among the top performers in the stock market in recent years. The Magnificent Seven are the following stocks: These…
Today we will look at another trend following strategy developed by a famous fund manager long ago. It’s called Fabian Timing Model and was developed by Richard Fabian in the 1960s. The Fabian timing model is a simple quantitative long-term trend…
Bullish percent index The Bullish Percent Index (BPI) is a tool used by investors to gauge market sentiment and potential shifts in market trends. In this article, we’ll look at what it is, how you can calculate BPI, find out…
Traders always want to have a Holy Grail trading strategy or indicator that can allow them to make all the money in the shortest possible time. While such indicators do not exist, the ADX and RSI are among the best…
