Monthly Momentum In SPY and TLT
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 readingSome Thoughts On Stop-Losses
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 readingA Monthly Momentum Strategy In ETFs
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 readingWhy The Mental And Behavioral Aspects Are Equally Important As The Strategy
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 readingS&P 500 Mean Reversion Using IBS and RSI
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 readingNasdaq (QQQ) Mean Reversion
Below is a simple and easy trading strategy to implement in QQQ: IBS (internal bar strength) must be lower than 0.25. RSI (5) must be below 25. If 1 and
Continue readingMonday/Tuesday Trade In Nasdaq – Update
In 2018 I wrote about a potential Monday/Tuesday trade strategy in Nasdaq. How has this strategy performed during the Covid-19 mess? Pretty good, actually. I’ve been trading this strategy, with
Continue readingSell In May And Go Away – Part 2
Most traders and investors have heard that you need to sell in May and go away. Is this just a myth or is it correct? Three years ago I wrote
Continue readingA Failed Bounce Is Normally Followed By Rising Prices
Rob Hanna at Quantifiable Edges had an interesting article some days ago about bounces in the S&P 500. I made some changes to his strategy and ended up with these
Continue readingSome Monthly Seasonalities In US Treasury Bills
August has historically provided good returns for owners of 30-year US treasuries. I read about this seasonality many years back, but I’m quite surprised it still seems to be working
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An Overnight Short Strategy In S&P 500
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
Continue readingShould You Trade Or Invest?
I often receive e-mails from potential traders that want to get “rich” trading. I tell them to instead consider investing their capital for long-term appreciation, preferably via passive or active
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Some Performance Facts About S&P 500
By looking at some potential strategies for S&P 500 I found some very interesting facts that I wouldn’t guess beforehand. I used the ETF SPY as a proxy for the
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S&P 500 Weekly Gains And Losses
Last week was rather rough for the stock markets all over the world. In the first four days, the S&P 500 lost more than 4%. Media is of course full
Continue readingMy 10% Best Days Account For 50% Of Profits
I had a brief look at the distribution of my trading profits over the last four years. I simply ranked my net profit per day in descending order and got
Continue readingMonday/Tuesday Trade In Nasdaq
One very simple strategy for QQQ/Nasdaq: Today is Monday OR Tuesday. IBS (c-l/h-l) is 0.1 or lower. If conditions 1 and 2 are fulfilled, go long at the close. Exit
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Tips for Millennials Who Want to Invest in Stocks
(Article Written by Oscar Wilkinson) Effectively investing in the stock market takes time, experience, knowledge, patience, and the confidence to invest money in what can be an extremely volatile market.
Continue readingTrade Full Time? Things To Consider Before Trading Full-Time
Many traders want to take the leap and go full time. Being a full-time employee while your real passion is trading, can drain your energy. It’s frustrating because your mind
Continue readingThe Hidden Cost Of Strict KYC and AML In The Banking Sector
This article is off-topic, but in my opinion quite important: International regulators, led by the EU and the USA, are increasingly taking steps to clamp down on money laundering and
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My Thoughts On Amibroker (review)
For years I have been trading (semi-automatically) using a simple script in Excel. Having focused solely on stocks since 2001, I decided to start looking into futures in early 2017.
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Buy When S&P 500 Makes New Intraday High?
Rob Hannah published last week a potential strategy on his blog. I put a twist to it and made the following strategy: Today’s intraday high must be higher than the
Continue readingThe Importance of Secondary Income When Day Trading
If there is one thing I would like to emphasize with this website, it is the fact that day trading is very hard. On top of that, you always have
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Internal Bar Strength In Consumer Staples
The internal bar strength is defined as follows: (close-low)/(high-low). Here is the strategy tested on XLP: Yesterday’s IBS must be lower than 0.15. Today’s IBS must be lower than 0.4.
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A Simple Rotational System Among Low Beta Stocks
I like to trade boring stocks. Today I picked 19 random (but liquid) low beta stocks (boring stocks) and tested a rotational system in Amibroker (of course with a bit
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How To Profit From The Russell 2000 End Of June Rally
Russell 2000 rebalances their holdings at the end of June every year. Here is what they say about rebalancing: June is the month that the preliminary reconstitution portfolio is communicated
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Sell In May And Go Away – OBX
Sell in May and go away must be one of the most famous phrases in the stock market. But is it correct? This is the first time I test this.
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Sell In May And Go Away – S&P 500
Sell in May and go away must be one of the most famous phrases in the stock market. But is it correct? This is the first time I test this.
Continue readingHow Bigger Spread Influenced My Trading Profits
This article covers the newly implemented 5 cents spread in certain stocks and how that has influenced my profit and loss (negatively). Background: On October 3 in 2016 SEC implemented the
Continue readingTo Avoid Second Guessing
My previous post on how I screw up by second-guessing my strategies made me change my trading habits (for the better). I have taken two actions for my day trading:
Continue readingThe Cost of Second Guessing Strategies
I keep a detailed log of all my trading activities, both day trading, swing trading and long-term positions. I believe this is the only way I can improve my trading.
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RSI(2) on SPY
Criteria for entry: If RSI(2) is less than 15, then enter on the close. Exit on close if today’s close is higher than yesterday’s high. Here is the accumulated profit
Continue readingBig Moves On Mondays – Update
In 2013 I wrote an article about big moves on Mondays. Here is a twist (and update) on this: Calculate a 25 day average of (h-l)/c. Today is Monday. Close
Continue readingEnd of Month Strategy in S&P 500 – Update
In July 2012 I published a strategy about an end-of-month strategy in the S&P 500. Here are the criteria: Entry: Day 29, 30 or 31 of the month must be
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Advantages With Quantified And Mechanical Strategies
A lot of the best traders (at least the ones I know) use some kind of mechanical rules in their trading. “Mechanical” implies that the rules are based on some
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How I Made Money Day Trading (tips, tricks and hacks)
Articles about day trading get about twice as many hits as other articles on this website. What’s so appealing with day trading? Is it that most people think it’s easy
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