6 Pivot Point Trading Strategies – A Backtest | How To Trade With Pivot Points? (Definition, Analysis and Performance)

We have been investing and trading for about 21 years, but not until now have we ever looked at a pivot points trading strategy. We can read a lot about pivot points in certain media magazines and by stock commentators but have seen very little backtesting of any pivot point strategies. Below you find six…

Last Trading Day Of The Month Trading Strategy (Last Day Of The Month Seasonality)

The last trading day of the month offers trading opportunities. This is one of many seasonal trading strategies.  Can we make a last trading day of the month trading strategy? The last trading day of the month is a weak day in the stock market – the last trading day of the month is a…

The First Day Of Month Seasonality In The S&P 500 (Trading The First Day Of The Month)

The first day of the month seasonality is strong in most markets. We have previously written about the turn of the month trading strategy, but today we look at the first trading day of the month. The turn of the month includes both the end of the month and the first three trading days of…

Things To Consider Before Trading Full-Time (Don’t Quit Your Job)

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 is elsewhere: the dream of freedom, independence, and becoming wealthy while you are working from wherever you like. No commuting, no boss, no 9-5 stress….

The Cost of Second Guessing Trading Strategies (Why You Need A Written Trading Plan and Log)

During my twenty years of trading, I have learned that the best recipe for success is to follow and execute my trading plan. The cost of second-guessing my written trading strategies shows why you need a trading plan. In this article, I provide hard facts about how my second-guessing and discretionary trading reduce my profits….

Day Trading: How I Made Money (How Day Traders Can Make It – Strategies, Tips, Tricks And Hacks)

How to make money day trading doesn’t have an absolute answer. However, How I made money day trading might offer some clues on how you can go about it. Day trading is fast-paced and gives an adrenaline rush. It offers the possibility of making a lot of money in a short amount of time if…

Trade The Boring Consumer Stocks When They Open Down And Yesterday Was A Down Day – A Day Trading Strategy

Trade The Boring Consumer Stocks When They Open Down And Yesterday Was A Down Day – A Day Trading Strategy

This was a long headline, which probably won’t catch many readers. Anyway, the trading strategy has proven to perform well in the past but in the last years up to 2021, it has been rather flat. In trading, boring is good. The strategy is tested on the ETF with the ticker code XLP. A day…

Day Trading SPY: Returns In The First Hour, Middle of The Day and The Last Hour

In day trading, what are the returns in the first hour, middle of the day, and in the last hour? I have lately broken down the trading day into performance during the first hour, the middle of the day, and the last hour. Previously I have written two articles about when SPY establishes the high…

The Importance of Good Data Sets When Backtesting (Garbage In Equals Garbage Out)

Good data is important in trading. After ten years of day trading, I have experienced the expensive way the importance of good data. The famous saying “garbage in, garbage out” is indeed true. Your backtest is only as good as the data you are testing on. Make sure you are backtesting on reliable and “clean”…

When SPY/S&P 500 Closes In the Bottom of Today’s Range (IBS)

Mean reversion strategies work well in the stock market. One of the best indicators for such strategies is the Internal Bar Strength Indicator (IBS): (HIGH-CLOSE)/(HIGH-LOW) This simple formula increases the odds a lot, in my experience, for mean-revertive assets like stocks and stock indices. Here is an example: Enter at close if the above formula is…

Gap Fill Trading Strategies – Opening Gaps in The SPY and S&P 500 | Gap Trading Systems [Backtest]

Searching on the internet you can find a lot of articles on how to play the opening gap of the S&P 500. Gap trading strategies are popular. What is an opening gap? (Gap Fill) A gap is when the opening price (or print) is higher or lower than the previous close. A gap up indicates…

How Important Are The Best Days Compared To Total Profits?

How important are the best days compared to total profits? In trading, you want to avoid negatively skewed trading strategies. These are strategies that have fat left tails and might wipe out all your profits from many trades. You need to understand the distribution of your expected profits and losses. Below is my profit distribution:…

MOC and OPG orders – (How To Minimize Slippage And Commissions When Trading) – [trading strategy]

Lately, I have done some research trying to develop some new daytrading strategies. I have tested many trading strategies that buy or sell at the open (OPG). The exit has been after two hours or on the close (MOC). An OPG trading strategy limits slippage. Likewise, a MOC trading strategy does the same. In this…

Commission Costs

Commission Costs

Trading is very difficult. Not only is it difficult to find profitable strategies, but you also have to overcome slippage and commission costs. Slippage is difficult to estimate. Commissions costs, however, are easy to calculate. Personally, I pay .001 per share in clearing plus ECN rebates and taxes/fees. So far in 2012, I have paid…

Knowing Yourself As A Trader – How To Gain A Trading Edge By Knowing Yourself (Introverts and Extroverts)

Knowing Yourself As A Trader – How To Gain A Trading Edge By Knowing Yourself (Introverts and Extroverts)

How to gain a trading edge by knowing yourself is crucial for success in trading. In previous articles, I have written about how to find trading edges in the markets, but in this article, I look at how you can gain a trading edge by knowing yourself. As a trader, you can gain a trading…