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…
The Piotroski F-Score strategy, developed by Joseph Piotroski, has gained widespread popularity among stock market investors. Many investors claim to use it for selecting stocks. You may have heard about the Piotroski F-Score, but do you know what it means…
In chapter 5 of Larry Connors‘ book High Probability Trading, published in 2009, there is a trading strategy called %b strategy. The book contains many strategies which we test in chronological order. 12 years have passed since the book was…
One of the benefits of globalization is that you can tap into investment opportunities in different parts of the world. As one of the fast-growing economies, India and its stock markets provide opportunities for investors who seek opportunities in the…
Most traders tend to focus on the daily and intraday charts. Only a few get to look at the weekly chart, let alone trade from them. But the weekly chart may provide more consistent setups that are easier to trade…
In this article, we will look at one of these traps; why does it happen? Who is responsible for them? Why does it concern you, and can you outsmart it? We show you how you can profit from a bull…
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…
The closest thing to a holy grail in trading is diversification. There is no holy grail trading strategy or strategies, but consistency can be achieved via non-correlated strategies. This is not a simple process but requires hard work plus delayed…
Every investment comes with the risk of loss, but it is possible to limit such risks using hedging strategies. Hedging trading strategies are valuable tools that every investor should be aware of, but what exactly are hedging trading strategies? In…
It feels great to make money in a bear market. It’s not about schadenfreude, but more about mastering the markets. So, how do you go about making money in a bear market? In this article, we indicate how to make…
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…
The Golden Butterfly Portfolio by Tyler portfolio is a simple but highly effective approach to asset allocation. It focuses on delivering steady investment growth by balancing economic conditions with an eye toward prosperity. Let’s find out what this portfolio is…
Bond trading strategies are difficult to find. Bonds are susceptible to erratic macro numbers and we believe bonds are harder to trade than stocks. Can the Japanese stock market predict the trend in US Treasury bonds? In this article, we…
The homebuilder industry has changed a lot in recent years, with large builders that are listed on the stock market increasing their share of the market. Want to know about the homebuilder industry? The home building industry is made up…
Once used as a form of currency in Central and South America before the Spanish conquest, cocoa is now used to produce chocolate and some of the most popular beverages in the world. Cocoa belongs to the soft commodity category,…
The conventional commission-based trading approach might reduce your profits and make it challenging to meet your investment goals. What is the typical Robinhood trading strategies among their customers? A Robinhood trading strategy refers to the strategies of clients of the brokerage….
An inverse ETF trading strategy is a trading method that seeks to profit from declining market conditions by buying inverse ETFs — exchange-traded funds that are designed to move in the opposite direction of the underlying index. The best inverse…
Rebate trading strategy is a strategy where traders aim to profit by taking advantage of rebates offered by exchanges or liquidity providers for providing liquidity to the market. Traders typically execute a large number of small trades to qualify for…
We have presented many XLP trading strategies over the years, and this is for a reason. The headline of this article, is XLP good for trading, deserves a big “yes”. This article argues that XLP (consumer staples) is an underappreciated…
Although not a well-known trading chart pattern, the measured move pattern can tune up your understanding of the price chart and improve your analysis if you know how to spot the pattern. What is this pattern, and how do you…
Heating oil is a low-viscosity liquid produced from refining crude oil, which is used almost exclusively for heating residential and commercial buildings. The demand for heating oil rises as the temperature drops during the winter, which makes it a highly…
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…
The Tuesday Reversal Trading Strategy is a method used in the stock market, particularly focusing on the S&P 500 index. It involves observing a consistent pattern of reversal on Tuesdays and implementing trading tactics based on various scenarios, such as…
A Pair Trade in SPY And TLT (Pairs Trading Strategies). A few days ago, we witnessed major moves in both long-term Treasuries (TLT) and the S&P 500 (SPY). That is not abnormal: when the going gets tough in stocks, many…
When it comes to trade entry and exit, most traders tend to think in singular terms — one shot in and one shot out. But breaking the position size into multiple smaller trade sizes and scaling in gradually may offer…
An E-mini Russell 2000 Index futures strategy is the methodology or technique you can use to profitably trade Russell 2000 Index futures, and this often includes technical and fundamental analyses for market timing and risk management. E-mini Russell 2000 Index…
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…
SPY tends to set its daily high and low during the first and last trading hours, which only make up 31% of the trading day. This suggests traders might find good times to enter or exit positions then, especially since…
The VIX and VXO are frequently used to time entry and exits in the S&P 500 and Nasdaq. In this article, we present you with a trading strategy that has beaten the S&P 500 despite being invested only 22% of…
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…
With a GDP of about 2.8 trillion dollars, France is the world’s fifth-largest economy and the second-largest economy in Europe, after Germany. It is home to the headquarters of the biggest stock exchange in Europe, so when it comes to financial…
Mean reversion trading strategies are still working very well in the stock market, at least in the main indices and the majority of the sectors. Back in 2013, we published a backtest that looked at the performance of S&P 500…
One of the most known factors in investing is momentum. Momentum states that an asset that has been going up is more likely to keep going up in the future than to fall. It has been widely researched by academia…
This article looks at how likely you are to go broke as retired or FIRE. Low interest rates make many pensioners and those who retire early (FIRE) allocate more and more capital to risky stocks. Many tend to forget that…
Almost ten years ago, we traded (for a few months) and revealed a potentially profitable trading strategy for gold miners. The strategy was based on the ETF with the ticker code GDX. How has the strategy performed since we…
Junk bonds are probably an asset class that very few traders are involved in. Junk bonds tend to correlate with the stock market, but junk bonds seem to trend more than stocks, which opens possibilities to make uncorrelated junk bond…
Let’s look at an interesting and peculiar pattern in GDX – gold miners: We have in many articles mentioned the tailwind from the overnight edge. We use the following trading rules: This strategy has returned the following equity curve: The…
Linear-weighted moving average strategy backtest Moving averages are a technical analysis tool that smooths price data over a specific period. They come in different types, and each type has its advantages and limitations. The linear-weighted moving average is one of…
You might stumble upon supposedly quantitative trading strategies based only on anecdotal evidence in the vast ocean of online resources. However, untested methods and strategies offer little more than hollow promises. We believe in providing examples of strategies that have…
Consumer confidence Index 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…
You might have saved up some money and decided to invest. You already know what you want to invest in, but now you have another decision: When should you invest? If you research the subject, you will likely come across…
Moving average slope strategy backtest Finding good signals in the random chaos called the financial market is not an easy job and as such, one has to seek out every possible way to analyze the markets. In the search for…
Detrended Price Oscillator (DPO) is a technical analysis indicator. According to the author’s idea, the indicator is built without considering trend movements on the chart, which allows a more accurate determination of overbought and oversold levels. Similar to a moving…
The proportion of adult Internet users who use social media platforms is approaching 75%, and this figure is growing. A good number of these social media users participate in the financial markets and use Twitter to disseminate their interest in…
In previous articles, we highlighted that simple adaptations to a strategy can have a huge impact on the performance of the strategy, its expected rate of return, and risk profile. We’ve seen that entering and exiting the trade on the…
Extracted from sugarcane and sugar beet plants, sugar is a soluble and sweet-tasting carbohydrate used to sweeten food products. Sugar futures are actively traded on commodity exchanges, such as CME and ICE. You can use sugar futures contracts to speculate…
Gold has a rich history dating back thousands of years, admired for its beauty and rarity. It has been used for currency, jewelry, and ornamental purposes across civilizations. But more recently, it has been widely used for speculating in the…
Warren Buffett has publicly (and frequently) written about what he considers the folly of investing in gold: Gold doesn’t produce any tangible values – neither products nor services. This article argues why Buffet is right about gold. However, are gold…
Some signals and indicators try to predict regime changes or future returns in the stock market. One of the most famous is the Breakaway Momentum indicator from Walter Deemer. Another one is the JP Morgan VIX Buy signal. The JP…
The US government bond market provides the most liquidity, security (in terms of creditworthiness), and diversity in the bond market. The 10-year T-Note futures is not just one of the ways to invest in the Treasury debt market but also…
Larry Connors is a well-known figure in the world of trading and finance, and he has developed several trading strategies over the years. Larry Connors is a well-known figure in the world of trading and finance. He is an author,…
Statistical arbitrage trading strategy involves buying and selling the same or similar asset in different markets to take advantage of price differences. Thus, arbitrage trading strategies are methods you can use to exploit arbitrage opportunities in any market. This may…
TikTok is a popular social media platform known for short videos, but it has also become a hub for trading advice and TikTok Trading Strategies. Many traders share their trading strategies and playlist on TikTok, and some have even become…
Micro E-mini Dow futures strategy refers to the techniques or methods that you can use to trade the micro E-mini Dow futures profitably. Micro E-mini futures are 1/10th the size of their E-mini counterparts. They can be traded electronically on…
DAX trading strategies refer to various approaches and techniques used by traders and investors to make trading decisions in the context of the DAX index. The DAX (Deutscher Aktienindex) is a stock market index that represents the 30 largest and…
Usually, timing strategies generate a lot of false signals that cause traders to lose money. To avoid that, today we will look at a strategy that does not generate false signals and can successfully predict the end of a bear…
A leverage trading strategy is a trading strategy that makes use of leverage for the execution of its trades. Financial leverage is the possibility of opening market positions using only a part of the necessary capital. “Give me a lever…
For those who follow social media, you might be aware of the following ratio that is frequently discussed: Nasdaq100 & Treasury Bond Bond relationship. What is it, and is it profitable? In this article, we explain the ratio and we…
SPX Trading Strategy When it comes to trading the S&P 500 Index, also known as SPX, having a well-defined trading strategy is important for achieving success in the markets. In this article, we will explore what the SPX trading strategy…
The potential of intermarket trading strategies is huge, and you get a glimpse of what you can do with our distilled Intermarket Trading Strategies guide. This resource is made for traders aimed at learning insights across equities, bonds, commodities, and…
Orange juice OJ futures strategy refers to the methods and techniques you can use to trade FCOJ futures contracts profitably. Orange juice OJ futures are contracts to receive or deliver the specified quantity of frozen concentrated orange juice on a…
Want to know about the VIX futures trading strategy? Introduced in 2004, VIX futures offers market participants the ability to trade a liquid volatility product based on the VIX Index — an index that measures implied volatility in the U.S….
Want to know how to get started creating trading strategies? This guide will walk you through the essential steps—from basics of trading to defining your own strategy and managing risks. By the end, you’ll be equipped with the knowledge to…
Is it a good idea to buy stocks setting 252-day lows? In this article, we backtest a 252-day low trading strategy for stocks. No, it’s not a good idea to buy stocks that set new 252-day lows. The 252-day low…
Is it smart to buy stocks setting 252-day highs? Let’s backtest a 252-day high trading strategy for stocks. The 252-day high trading strategy for stocks returned 9.6% annually while using, on average, 83% of the capital. 252-day high trading strategy…
Trading commodity futures is one way to diversify your portfolio and explore investment avenues beyond traditional securities, and coffee futures are among the most actively traded soft commodities on the commodity exchanges. To trade coffee futures successfully, you need to…
This article shows you how to short retail investors’ favorite stocks. Is it possible to make money shorting stocks? It is, albeit it’s very difficult. In the context of a bear market, where stock prices can rapidly decline and volatility…
The XLK/XLU ratio is the XLK ETF price divided by the XLU ETF price. It is often used to read market sentiment. A rising XLK/XLU is considered bullish, while a falling ratio is considered bearish. In this article, we backtest…
The S&P 500 is the most followed index in the world. As such, it catches a lot of attention when it is up for many weeks in a row. But how does it perform after being up for eight consecutive…
For more than 7000 years, cotton has been one of the raw materials used in the production of textiles and other fiber-requiring materials including fishnets and gunpowder. In fact, its use continues to increase and now accounts for over 35%…
Larry Connors and Cesar Alvarez revealed a trading strategy called Double Seven in their book Short Term Trading Strategies That Work. This is a fairly simple system that at the time worked very well among a wide range of ETFs….
Pivot point trading strategies involve using key support and resistance levels calculated from previous market data to determine potential entry and exit points for trades. We have been investing and trading for about 21 years, but not until now have…
Volatility trading strategies can be very profitable. As an example, we show you an equity curve that only trades when volatility is above what is “normal”. We use a 200-day moving average as a filter for when we want to…
What happens when SPY is down 4 days in a row? Let’s test 4 down days in a row trading strategy. Entry is on the close and exit is on the first day with a close higher than the previous…
In a previous article, we presented an S&P 500 and gold rotation strategy. Today we test a sector rotation strategy between S&P 500 and gold miners. Let’s call the strategy an S&P 500 and gold miners rotation strategy. The logic…
This Every Open Down Trading Strategy, tested with ETF SPY (representing the S&P 500), operates on a basic principle: buying when the market opens down and selling at the close, with specific criteria guiding entry and exit points. The simplicity…
The winter period, October to May, has historically been a very good period for US stocks for many decades. What is the country ETF performance per quarter? How has the stock market in other countries performed? This article looks at…
This S&P 500 Reversal Trading Strategy offers a structured approach to potentially profit from market reversals, emphasizing the importance of meticulous testing and adaptability in the dynamic world of trading. Mondays and Fridays often bring about significant reversals in the…
Thursday last week, the 4th of November 2021, was the fourth day in a row with a higher close than the previous close in the S&P 500. How often does this happen? Let’s test on the ETF SPY since its…
Discovering profitable trading strategies can be both exciting and challenging. One such strategy, known as the Overnight Reversal Strategy, focuses on capitalizing on potential market reversals that occur specifically on Mondays and Tuesdays. By analyzing historical market data, this article…
What are the Donchian Channels and do they work on stocks? The Donchian Channels were invented by Richard Donchian decades ago. They are still a popular tool for traders, but the markets have changed a lot since Donchian’s invention. The…
Introducing the “3 Days Down Overnight Trading Strategy”: This strategy focuses on the S&P 500 index, tracking its movements over a three-day period. If the index closes lower for three consecutive days, a trade is entered at the close of…
SPY is very mean revertive and RSI is a mean revertive indicator. Does this mean that RSI works on SPY? In this article, we test an RSI SPY trading strategy. It turns out that our hypothesis is correct: the RSI…
XLP Trading Strategies focus on mean-reverting assets, such as the XLP ETF, using the Internal Bar Strength (IBS) indicator. The strategy involves entering trades based on specific criteria, including low IBS values from yesterday and today, as well as RSI(5)…
You are going to learn Nasdaq trading strategies (Backtested) as well as how to apply them effectively. Investors often ask this while seeking to achieve better returns. Our guide strips away the complexity, offering you practical insight into the three…
Below is a potential short strategy in the S&P 500: Short= C>Ref(C,-1) AND Ref(C,-1)>Ref(C,-2) AND Ref(C,-2)>Ref(C,-3) AND ADX(5)>35 AND RSI(2)>90 Description: If the close is higher for the third time in a row, 5 day ADX is bigger than 35…
The failed bounce trading strategy: Rob Hanna at Quantifiable Edges had an interesting article some days ago about bounces in the S&P 500. Let’s test his idea and turn it into a testable hypothesis: (This article was first published in…
Below is a trading strategy backtested on SPY or the S&P 500: The classical mean reversion strategy in the S&P 500 In plain English the strategy reads like this: Trading Rules The equity curve since January 2000 looks like this…
An article about VIX trading strategies and explaining: what is the VIX and how does it work? The VIX is a fear index and shows the price you need to pay to get insurance in the stock market. In this…
Stock and sector rotation is when you switch between different asset classes or stocks. In this article, we look at different types of stock and sector rotations and why they make sense. In the stock market, we have momentum and…
Trend following the S&P 500 is probably not the sexiest thing to do. Back in 2012 Meb Faber published a paper called A Quantitative Approach To Tactical Asset Allocation in the Journal of Wealth Management. Meb Faber found the 200-day…
