Skip to content

Quantified Strategies

Quantitative analysis and strategies in the financial markets

  • NEW! Trading Edges
  • Trading Strategies
  • day trading
  • trading knowledge
  • RationalThinking.net
  • My Books

Are The Bollinger Bands Profitable? (Including Strategies)

Posted on December 29, 2020March 6, 2021 by Oddmund Groette

The Bollinger Bands are renamed after its inventor, John Bollinger. The indicator was invented in 1980 and made John Bollinger a pretty famous trader. The bands are included in all

Continue reading
strategies
One comment

The January Effect That Works

Posted on December 27, 2020March 6, 2021 by Oddmund Groette

On page 279-280 in The Education of a Speculator, Victor Niederhoffer explains his version of the January effect: The gain in January determines the average gain the next 11 months.

Continue reading
strategies
Leave a comment

The January Effect In The S&P 500 (Does It Still Work?)

Posted on December 27, 2020March 6, 2021 by Oddmund Groette

The January effect is a well-known anomaly. To our knowledge, it was published as a strategy for the first time in 1962, according to Victor Niederhoffer in the book The

Continue reading
strategies
Leave a comment

The End Of The Year Rally In The S&P 500

Posted on December 27, 2020March 6, 2021 by Oddmund Groette

We are now entering one of the (historically) strongest periods of the stock market: the last days of the year plus the first days of the next year. Back in

Continue reading
strategies
Leave a comment

What Is A Good Trading Strategy?

Posted on December 23, 2020March 6, 2021 by Oddmund Groette

First things first: The first thing you need to understand is that the perfect strategy doesn’t exist. Many keep looking for the perfect indicator or the perfect setup, or they

Continue reading
strategies
Leave a comment

Larry Connors’ R3 Strategy (It Still Works)

Posted on December 21, 2020March 6, 2021 by Oddmund Groette

Today we continue backtesting the strategies Larry Connors and his team published in 2009 in a book called High Probability ETF Trading. All the strategies were tested on a basket

Continue reading
strategies
3 comments

Larry Connors’ RSI 25 & RSI 75 (It Still Works)

Posted on December 15, 2020March 6, 2021 by Oddmund Groette

High Probability ETF Trading, published in 2009 and written by Larry Connors and Cesar Alvarez, contains some interesting strategies. They are all mean revertive and tested on the most popular

Continue reading
strategies
Leave a comment

Larry Connors’ 3 Day High/Low Method (Does It Still Work?)

Posted on December 14, 2020March 6, 2021 by Oddmund Groette

Larry Connors and Cesar Alvarez published a book called High Probability ETF Trading in 2009. All of the strategies covered in the book showed great results, but almost 12 years

Continue reading
strategies
2 comments

Are Moving Averages Good Or Useless? (Quantified Analysis)

Posted on December 11, 2020March 6, 2021 by Oddmund Groette

Moving averages are widely discussed and used in the media and likewise frequently used by analysts when making calls about the future. Most traders and investors have probably heard about

Continue reading
strategies
One comment

Ways To Use ADX (Average Directional Index | Does It Work?)

Posted on December 8, 2020March 6, 2021 by Oddmund Groette

This article looks at the ADX indicator. The indicator was developed by Welles Wilder and released in his book from 1978 called New Concepts In Technical Trading Systems. Mr. Wilder

Continue reading
strategies
Leave a comment

Why Build A Portfolio Of Quantified Strategies (Including Two Strategies)

Posted on December 7, 2020December 7, 2020 by Oddmund Groette

The most important task of a quantitative trader is to find trading edges and subsequently turn them into good stand-alone strategies. However, many traders neglect to test how those strategies

Continue reading
strategies
Leave a comment

How The RSI Indicator Works (How To Use It In Trading)

Posted on December 2, 2020February 22, 2021 by Oddmund Groette

The Relative Strength Index (RSI) was developed by Welles Wilder and first introduced in a magazine called Commodities (now Futures) in June 1978. Wilder published a book in the same

Continue reading
strategies
Leave a comment

How To Fail As A Trader: 11 Skills Of The Unsuccessful (Inverse Thinking)

Posted on November 30, 2020November 30, 2020 by Oddmund Groette

Always inverse, says the famous investor Charlie Munger, Warren Buffet’s friend and business partner. What is inverse thinking? This is when we turn a problem on its head or look

Continue reading
trading knowledge
Leave a comment

The Elder Ray Indicator (With Quantified Examples): Does It Work?

Posted on November 25, 2020November 30, 2020 by Oddmund Groette

In a series of articles, we want to test different indicators and trading techniques. Almost all indicators are “proved” by anecdotal evidence, and rarely quantified. That’s perhaps not a coincidence:

Continue reading
strategies
3 comments

Why You Shouldn’t Trade Penny Stocks (Why Avoid Them)

Posted on November 21, 2020March 16, 2021 by Oddmund Groette

Penny stocks: Extremely inexpensive equities that are worth substantially less than what they cost. – Don Staricka Penny stocks attract a lot of attention, both among investors and traders, but

Continue reading
strategies
Leave a comment

Why Scalping Is A Waste Of Time (Do This Instead)

Posted on November 16, 2020March 6, 2021 by Oddmund Groette

We don’t recommend scalping. Scalping involves competing with better-equipped traders and institutions, you need to deal with lots of randomness, and you most likely end up both wasting your time

Continue reading
strategies
Leave a comment

How To Find Trading Edges In The Markets (With Examples)

Posted on November 13, 2020March 6, 2021 by Oddmund Groette

Having some kind of an edge in the markets is crucial to make money. The financial markets are a competitive place where amateurs and beginners are easy prey for the

Continue reading
strategies
Leave a comment

What Is The Best Personality Type For Trading? (Extrovert Or Introvert Traders)

Posted on November 12, 2020March 6, 2021 by Oddmund Groette

Most traders focus on finding an edge in the market by developing good and robust trading strategies. But many neglect one other very important factor for good returns: understanding your

Continue reading
trading knowledge
Leave a comment

What Are Quantified Strategies? – [With Examples]

Posted on November 9, 2020March 6, 2021 by Oddmund Groette

This website is all about quantified strategies, often called algorithmic strategies. But what exactly are quantified strategies? Quantitative/quantified strategies defined: Quantitative strategies are strategies based on finding inefficiencies in financial

Continue reading
strategies
Leave a comment

The Internal Bar Strength (IBS) Indicator [Including Quantified Strategies]

Posted on October 30, 2020March 6, 2021 by Oddmund Groette

The Internal Bar Strength indicator (IBS) has worked remarkably well for over two decades. We can only guess why, but the stock market has been highly mean-reverting during this period,

Continue reading
strategies
Leave a comment

RSI(2) On QQQ (Nasdaq)

Posted on September 16, 2020March 6, 2021 by Oddmund Groette

Back in 2016 I published an article on using short term RSI (relative strength index) on SPY. Let’s test how a slightly different strategy performs on QQQ: RSI(2) must be

Continue reading
strategies
3 comments

September Is The Worst Month Of The Year For Stocks

Posted on September 4, 2020March 6, 2021 by Oddmund Groette

Yesterday, the 3rd of September 2020, witnessed a pretty big drop in the stock market with Nasdaq leading the decline with a drop of 5.07%. Out of interest, I looked

Continue reading
trading knowledge
Leave a comment

Being Slightly Bonkers Can Serve You Well In Trading

Posted on August 27, 2020March 6, 2021 by Oddmund Groette

The models that dominate all human decision-making today are duly heavy on simplistic logic, and light on magic – a spreadsheet leaves no room for miracles. But what if this

Continue reading
trading knowledge
Leave a comment

Is Fear Good Or Bad For A Trader? (How To Overcome Fear)

Posted on August 21, 2020March 6, 2021 by Oddmund Groette

In a previous post, I wrote about a trader’s mindset. You have to battle the markets, of which you have no influence and control, but more importantly, you have to

Continue reading
trading knowledge
Leave a comment

Monthly Seasonalities In Long-Term Treasuries

Posted on July 31, 2020March 6, 2021 by Oddmund Groette

We are now entering the best month over the last 20 years in long-term treasuries (TLT) – August. From the last closing price of July until the last in August

Continue reading
strategies
One comment

Boardgames And Trading

Posted on July 21, 2020March 6, 2021 by Oddmund Groette

I currently reread Victor Niederhoffer’s The Eduction of A Speculator. I regard this book as one of the best I have ever read. It’s not an easy read, but it

Continue reading
trading knowledge
Leave a comment

Is It Still Possible To Trade US ETFs For EU Retail Residents?

Posted on July 14, 2020March 6, 2021 by Oddmund Groette

Background: An EU/EEA regulation called MiFID requires brokers to categorize their clients as either “retail” or “professional” in order to determine the correct level of investor protection and transparency. MiFID

Continue reading
trading knowledge
4 comments

Market Neutral Momentum in EEM And SPY

Posted on July 3, 2020March 6, 2021 by Oddmund Groette

Over the last weeks I have written three articles about monthly momentum in TLT, SPY, and EEM: Monthly momentum in SPY, TLT, and EEM. Monthly momentum in SPY and TLT.

Continue reading
strategies
Leave a comment

Monthly Momentum In SPY and EEM

Posted on July 1, 2020March 6, 2021 by Oddmund Groette

I have over the last week written two articles about momentum: Monthly momentum in SPY, TLT, and EEM. Monthly momentum in SPY and TLT. The third looks at rotating between

Continue reading
strategies
Leave a comment

Daily Effects In Long-Term Treasuries

Posted on June 26, 2020March 6, 2021 by Oddmund Groette

20+ treasury bonds show a significantly different performance depending on the day of the week. Assume we start with an account worth 100 000 and hold for one day: Mondays

Continue reading
strategies
17 comments

Monthly Momentum In SPY and TLT (Rotation Strategy)

Posted on June 25, 2020April 5, 2021 by Oddmund Groette

Some days ago I published an article that rotates between SPY, TLT, and EEM based on monthly momentum. Let’s test how this strategy performs when rotating between SPY and TLT:

Continue reading
strategies
Leave a comment

Some Thoughts On Stop-Losses

Posted on June 22, 2020March 6, 2021 by Oddmund Groette

Many traders swear to stop-losses by default, but to me, it doesn’t make sense because: If you buy something at 100, why should you just put in an arbitrary stop-loss

Continue reading
trading knowledge
Leave a comment

A Monthly Momentum Strategy In ETFs

Posted on June 19, 2020March 13, 2021 by Oddmund Groette

Below is a very simple and easy strategy to implement: It’s based on monthly quotes in the ETFs SPY, EEM, and TLT. Every month rank them based on last month’s

Continue reading
strategies
2 comments

Why The Mental And Behavioral Aspects Are Equally Important As The Strategy

Posted on June 16, 2020March 6, 2021 by Oddmund Groette

No matter how good strategies you have, they are most likely worthless if you can’t execute them properly. What looks like a piece of cake in a backtest, is completely

Continue reading
trading knowledge
6 comments

S&P 500 Mean Reversion Using IBS and RSI

Posted on June 1, 2020March 6, 2021 by Oddmund Groette

Below is a simple and easy trading strategy to implement in SPY or the S&P 500: IBS (internal bar strength) must be lower than 0.25 (using daily bars). RSI (21)

Continue reading
strategies
2 comments

Posts navigation

«Previous Posts 1 2 3 4 … 7 Next Posts»

Subscribe to our free newsletter:

loader

I accept the terms and conditions

Search QuantifiedStrategies:

Take a look at our Trading Strategies

Popular posts:

  • Trading strategies
  • Do candlesticks work? A quantitative test of 23 candlesticks  formations
  • RSI(2) On QQQ (Nasdaq)
  • Thoughts on Amibroker
  • How to find trading edges in the markets
  • Larry Connors’ R3 strategy
  • How to fail as a trader
  • How Jim Simons made 66% a year by using quant strategies
  • Daytrading
  • S&P 500 Mean Reversion Using IBS and RSI
  • The Internal Bar Strength (IBS) Indicator
  • Internal Bar Strength In Consumer Staples
  • Buy When S&P 500 Makes New Intraday High?
  • How to become a successful quant trader
  • Ways to use ADX
  • What is a good trading strategy
  • Does the MACD indicator work?
  • Monthly momentum in SPY and TLT
  • How I made money day trading
  • Why strategies don’t work in live trading

Recent posts:

  • How To Enter And Exit Positions At The Close
  • Survivorship Bias In Backtesting, Trading And Investing (Examples)
  • What Is The VIX And How Does It Work? (Is It Profitable?)
  • How Does Pairs Trading Work? Is It Profitable?
  • Can You Become A Quantified Trader? A Personality Test
  • Ed Seykota – Wisdom And Quotes
  • Proprietary Trading – Pros And Cons (A Personal Experience)
  • The Stochastic Indicator – Does It Work? (How To Use It)
  • Is Interactive Brokers Safe? Brexit Mess
  • How To Overcome Trading Biases
  • How To Succeed In Day Trading
  • Williams %R Explained – Does It Work? (Better than the RSI)
  • Edward Thorp: Beating The Odds – The First Quant
  • WilliamsVixFix Explained – Does It Work?
  • Why Strategies Don’t Work In Live Trading
  • Is This The Holy Grail Of Trading?
  • The Most Common Trading Biases (How To Deal With Them)
  • Why Day Traders Fail (Avoid The Pitfalls)
  • Trading Strategies And Correlations
  • How Can A Beginner Start Trading?

About the site

Terms of use

WordPress Theme: Donovan by ThemeZee.
This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Cookie settingsACCEPT
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled

Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.

Non-necessary

Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.

SAVE & ACCEPT