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…
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…
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…
Burton Gordon Malkiel in his famous book — A Random Walk Down Wall Street — popularized the random walk model of the financial markets. According to him, the market moves randomly and its direction cannot be predicted with technical or…
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,…
The Dow Jones Industrial Average is the oldest stock market index in the world. However, it is not as popular as the S&P 500 or the Nasdaq nowadays. But this doesn’t mean it can’t be traded profitably. In this article,…
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…
Making wise investment decisions in today’s erratic financial market may depend on your ability to recognize the signals of a potential market reversal. The phrase “Reversal Day” refers to a day when a stock or market index changes direction, either…
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….
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….
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…
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 contracts or swaps. It could also be a fund that uses a…
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…
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…
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…
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…
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…
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…
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…
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….
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…
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…
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…
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…
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…
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…
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…
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…
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…
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…
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…
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,…
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,…
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…
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,…
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,…
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…
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…
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…
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…
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,…
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….
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…
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…
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…
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?…
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…
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…
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…
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…
As a stock market trader, you must have been conversant with the phrases like a bull, a bull run, and a bull market. Those are phrases used to describe buying sentiment in the market. But what actually does bull market…
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…
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…
Most retail investors focus on companies’ fundamentals or valuations when deciding where to invest. But another important aspect to consider is in what context these companies operate: Is the economy growing or in a recession? What is the unemployment rate?…
Today, we show you the performance data of a quarterly trading strategy that boasts substantially better risk-adjusted returns than buy and hold: Buy and hold returns 7.2%, while our quarterly trading strategy compounds at 9.8% if we adjust for much…
Some active traders like to trade daily, opening and closing their trades within the trading day. This manner of trading requires having a daily trading strategy. The daily trading strategy is a method of trading where a trader buys and…
In this article, we make a backtest of a specific trading strategy and compare the results by using three different entries: Let’s start: Entry types Let’s look at the different options for when and how to enter a position: 1….
In the US, hard-to-borrow stocks underperform over 3-, 6-, and 12-month periods. Moreover, hard-to-borrow stocks consistently underperform those that are not hard to borrow. Is that negative edge big enough to make a hard to borrow stocks trading strategy? Verdad…
The name may sound freaky, but it is a common strategy used by traders in different markets. You may be wondering what death cross and double death cross mean. The double death cross strategy is a modified death cross where…
Also known as investor attention or crowd psychology, market sentiment indicators refer to the prevailing attitude of investors as regards expected price development in a market. It is the feeling or tone of a market, as revealed through the activity and…
Nancy Pelosi, a former Speaker of the United States House of Representatives, has long been a subject of scrutiny for her investment activities. Her stock trades have consistently outperformed the broader market, leading some to question whether she is using…
An essential part of technical analysis is studying the chart patterns, and one common chart formation is the 123-reversal setup, which appears at the beginning of many price reversals. But what is the 123 pattern reversal strategy? The 123 reversal…
The Relative Strength Index (RSI) is among the common and most powerful technical indicators widely used by professional traders and investors when analyzing financial markets. This index has been used by traders to make crucial decisions since it was initiated…
Imbalance trading strategy, also known as order imbalance trading, is a “technical analysis” approach that utilizes the imbalance between buy and sell orders to identify potential trading opportunities. This strategy is based on the premise that large imbalances, especially when…
There are different ways to skin a cat, they say. But in trading, especially short-term trading, one method might stand a shoulder above all, and that is the multiple timeframe analysis. What is the multiple timeframe strategy? The multiple timeframe…
(Peel Off Trading Strategies) Many traders focus on creating the best entry strategies and don’t give much thought to their exit methods. There are many ways to exit a trade, but one strategy used by most traders is the “peel…
Introduction to Pin Bar Trading: A pin bar, short for “Pinocchio bar,” is a distinctive candlestick pattern frequently utilized in technical analysis within the realm of financial trading. It is characterized by a long tail or shadow and a small…
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…
IPOs are one of the most frequent corporate events in the market. They get a lot of press coverage, and it is not unusual to see large pops on the first day of trading. But the question is: how do…
Whole number trading strategies are a fundamental component of technical analysis in financial markets. Traders and investors often rely on these strategies to make informed decisions about buying or selling assets. The core principle behind whole number trading strategies 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…
Today, we present a new strategy bundle that contains three 24-hour day trading strategies. What is a 24-hour day trading strategy? That is a strategy that buys at the close and holds the position for 24 hours until the next…
Stock trading strategies involve buying and selling in the stock market—even including ETFs. Understanding exactly what the main elements of a stock trading strategy are will most likely improve your chances of making money trading. This guide covers a range…
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…
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…
Backtested Futures Systems are employed to capitalize on market movements by buying or selling futures contracts. These futures strategies can be broadly categorized into three main types: trend following, mean reversion, and arbitrage. Trend-following strategies involve identifying and riding upward…
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),…
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….
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…
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…
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…
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,…
We have previously published an article on using RSI on SPY (relative strength index). The RSI has proven to be a valuable indicator/tool for mean reversion in the main stock indices. Today we present an RSI trading strategy. In this…
It’s possible to make a Friday Jobs Report trading strategy. One of this planet’s most important macro numbers is the monthly US job report. The employment report sets the bond traders on fire and, subsequently, the stock market because the…
The Renko trading strategy is a type of charting that is built to show a specified range of price movements rather than time-based price movements like most chart types. It looks like a series of bricks, with each block positioned…
Hard Red Winter Wheat trading strategy refers to the methodologies and techniques you can use to trade Hard Red Winter Wheat futures contracts profitably. Hard Red Winter (HRW) wheat futures are contracts to receive or deliver the specified quantity of…
A deflation trading strategy refers to the methods and techniques you can use to invest and make money during a period of deflation. This includes how to spot the asset to trade, the direction to trade, and how to spread…
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…
Interested in optimizing your market timing and trend identification with moving average trading strategies? This comprehensive guide delves into the intricacies of utilizing fundamental moving averages such as the SMA and EMA. Explore techniques for refining entry and exit points,…
The NR7 trading strategy is a narrow-range strategy that is both well-known and popular. If you do a search on the internet, you get multiple hits on the strategy. To our knowledge, the strategy was first developed by Tony Crabel…
If you have been following the stock markets around the world, you would be conversant with stock market indexes, such as the S&P 500, DOW 30, NIKKEI 225, DAX 30, STOXX 40, CAC 40, and FTSE 100. Ever wondered about…
With more retail traders picking interest in futures trading, the CME Group decided to launch micro e-mini futures to make futures accessible to more retail traders with low capital. Those contracts are the smaller versions of the popular e-mini futures…
Leveraged ETF trading strategy refers to a short-term investment method that involves trading leveraged ETFs — exchange-traded funds that use financial derivatives and debt to amplify the returns of an underlying index. There are hundreds of leveraged ETFs across different…
