Member Trading Strategy

Albert Einstein is famous for saying that compounding is the eighth wonder. But is he correct? Yes, to a certain extent, he is correct. Look at the example below: Read the rest of the article: Members Only)

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 strategy on four different US stock market indices to show the differences in returns and…

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 the comparison we created a portfolio with a maximum of 10 positions each and compared…

Market timing is not easy, and if you get it wrong, it might lead to poor compounding (in the long run). We did a backtest to show what happens when you: Read the rest of the article: Members Only)

In this article, we make a backtest of a specific trading strategy and compare the results by using three different entries: Let’s start: Read the rest of the article: Members Only)

We are strong believers in seasonal trading strategies, and one of the best seasonalities is specific trading days of the month. Most articles about seasonal trading refer to calendar days, but a much more accurate trading term is the trading day. The calendar and trading days can be completely different. So, what is the best…

We have in a previous article determined that there is a positive holiday effect in stocks. This effect happens on the days before the holiday. But is there an opposite effect? Is there a post-holiday effect in the stock market?

Would you like to know what the worst-performing group of stocks is? One certain type of stock has not made any money since JFK was president. That is 60 years. Yes, you read it right. 60 years! Any long-term mindset won’t help you if you invest in this type of stocks. Read the rest of…

Let’s look at an interesting and peculiar pattern in GDX – gold miners: Read the rest of the article: Premium Access (Subscriber Only)

The headline “The Small Steps of Giant Leaps” is “stolen” from a blog post published on Farnham Street. What is Farnham Street? Read the rest of the article: Member Access

What trading hour is the best? Does the time of day make a difference when trading? When should you buy and sell during the trading day? We test: Gold, Oil, Silver, SP500, and Swiss Franc Read the rest of the article as a member: Premium Access (Subscriber Only.

A few months back we published an article about seasonality in the retail sector: Our article was based on research done by Jay Kaeppel. Mr. Kaeppel did a follow up some few months later, but this time he included two slightly different retail funds by fidelity: Read the rest of the article as a member: Premium…

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 and proven by multiple studies that it works. However, in the short term, the story…

Mean reversion has worked very well on most Western stock indices for about three decades. It has worked even better during the bull market after the financial crisis in 2008/09. One of the most popular mean reverting strategies is what we can label as “overnight trading”. If you are new to the concept we recommend…

It’s possible to make Friday Jobs Report trading strategies. One of the most important macro numbers on this planet is the monthly US job report. As a bonus, at the end of this article, we provide you with the code for the monthly jobs report for both Amibroker and Tradestation (And Plain English for Python…

The end-of-month bias (effect) in stocks is well documented. But how strong is the bias? We conduct a simple test to show how strong the effect is. Read the rest of the article as a member: Premium Access (Subscriber Only)

One of the best edges in the stock market is the overnight edge – the price action from the close until tomorrow’s morning (or close). Is it still working? Can a trend filter improve performance? Read the rest of the article: Premium Access (Subscriber Only)

We did a backtest where we optimized the month and calendar day to find the best calendar days for the S&P 500. Read the rest of the article: Premium Access (Subscriber Only)

What happens in the coming days after a very bad Friday when the stock market goes down? Let’s backtest and find out if we can make any money from it. Read the rest of the article: Premium Access (Subscriber Only)

What are the worst days of the year for trading stocks? Let’s find out and test from the year 2000. Read the rest of the article: Premium Access (Subscriber Only)

This article shows a rotation strategy between healthcare stocks and the S&P 500. The trading idea is pretty simple, but it beats the buy and hold of the S&P 500. Moreover, we believe this strategy is more rational than at first glance. Keep reading for more details: Read the rest of the article: Premium Access…

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 article: Read the rest of the article: Premium Access (Subscriber Only)

The options expiration week effect is well known but very little research can be found online about the specific options expiration day. Let’s dig a little deeper and find out some specifics (and profitable) about this day. Read the rest of the article: Premium Access (Subscriber Only) Relevant articles:

Stock and sector rotation is when you switch between different asset classes or stocks. In this case, between different asset classes. Read the rest of the article: Premium Access (Subscriber Only)

Here is a trading strategy that are rotating between S&P500 and Treasuries. Read the rest of the article with VIP Article Access (Subscriber Only)

Let’s test the strategy Turnaround Tuesday but only in bear markets. Does that work? Read the rest of the article with VIP Article Access (Subscriber Only)

One of the more peculiar effects of the S&P 500 is the huge difference in performance between odd and even days. It turns out that one type of calendar day is much better than the other. Can we develop a trading strategy based on odd and even days? Read the rest of the article with…

SPY is the ETF for S&P 500 and GLD is the ETF for the gold price. Read the rest of the article with VIP Article Access (Subscriber Only)

Many traders fear a bear market would be really bad for their trading. Is this true? Should you trade during a recession? What does the data say? There are ways to exploit a bear market during a recession. A big part of that is understanding how the market behaves. We have in multiple other articles…

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. Read the rest of the article with VIP Article Access (Subscriber Only)

For those who follow social media, you might be aware of the following ratio that has been much discussed lately: Nasdaq100 and Bonds. Read the rest of the article with VIP Article Access (Accessible for all memberships)

We did a backtest where we optimized the month and trading day to find the best trading days for the S&P 500 from the year 2000. We remind you that the TRADING day is different from the calendar day. Read the rest of the article: Premium Access (Subscriber Only)