Today we are presenting three free mean reversion strategies. They were partially published on this website a few years back, and today we make some minor adjustments and present their performance on different ETFs. Furthermore, we discuss why mean reversion…
Many trading indicators are available to traders. One of the indicators used in the stock market is the DeMarker indicator, named after Thomas DeMark, a prominent technical analyst. This indicator is a part of a trading system that incorporates bollinger…
Very few bullish candlestick patterns work, but this article presents 3 bullish candlestick patterns that work. Even though Candlesticks are a popular charting method, very few patterns have any predictive value. We use candlesticks extensively ourselves for charting because we…
The MACD-histogram trading strategy is a mean-reversion system that identifies momentum changes and reversal points in the stock market. The strategy has generated 6669 trades on a portfolio of 77 ETFs, with long positions better than short positions. Let’s jump…
A carry trade strategy involves borrowing at a low-interest rate currency and converting the borrowed amount into another currency with a higher interest rate to invest in an asset that provides a higher rate of return. If you are active…
Can we make a profitable MACD trading strategy with the help of the MACD indicator and the MACD histogram? This article examines the MACD indicator and its use to create a MACD trading strategy. It explains what the indicator is…
Making wise investment decisions in today’s erratic financial market may depend on your ability to recognize the signals of a potential market reversal. The phrase “Reversal Day” refers to a day when a stock or market index changes direction, either…
Key takeaways Stochastic trading strategy (Backtest) In this section, we tested the stochastics indicator strategy using two trading styles: short-term mean reversion (overbought/oversold) and %K and %D crossovers. We tried only the S&P 500, and we used the ETF with…
WilliamsVixFix indicator was invented back in 2007 when the well-known trader and “indicator innovator” Larry Williams wrote an article in Active Trader about VIX and how you can create your synthetic VIX for any security you like. The aim of…
Gap trading strategies have been a popular tool for many decades. Gaps vary in size, variations, and volume depending on the asset you are looking at. Gaps can be traded in any instrument, and certain asset classes have substantial daily…
In this article, we backtest Larry Connors‘ 3 day high/low Method/Strategy. How has the strategy performed since it was revealed in his book in 2009? The 3 day high/low method/strategy performed well in Connors’ book, and it still works pretty…
The best indicator for swing trading is Williams’s %R. It is one of the least known or used indicators but definitely one of the best swing trading. We tesed six indicators and based our conclusions not necessarily on the highest…
There are countless technical indicators that traders look at. Among the most popular that try to gauge momentum are the RSI and the stochastic indicator. However, today, we will learn about one that is not so well-known: Chande momentum oscillator…
The right trading tool enables you to enter the market cautiously but exit when there are signs of reversal, just as the professionals do it — one indicator that may help with that is the REX Oscillator. What do you know…
The Weekend Trend Trader trading strategy is a mechanical and systematic trading system designed for part-time traders, allowing them to make decisions and manage trades during the weekend when markets are closed. In this article, we explain the Weekend Trend…
As traders, we rely on many different technical tools for analysis to gain meaningful insights into market trends, and one tool that tracks the trend effectively is the Standard Error Bands. What do you know about this indicator? The Standard…
Williams %R was developed by the famous trader and tax rebellion Larry Williams, who has given names to several technical indicators. Last week we wrote about the WilliamsVixFix indicator, and today we are explaining the Williams %R trading strategy and…
Some traders believe they can use the phases of the moon cycle (lunar cycles), such as the full moon, to time the market and make profitable trading decisions. This has given rise to the Full Moon/Moon Phases/Lunar Cycles Trading Strategies….
The stock market has been on fire for the last decade, causing the impression that it reached an all-time high almost every day. However, this is only a perception because all-time highs are quite uncommon. Let’s make an all-time high…
In the ever-evolving world of financial markets, traders are always looking for new ways to understand price movements and indicators like the True Strength Index (TSI) come in handy. What do you know about this indicator? The True Strength Index…
In the fast-paced world of financial markets, traders are always seeking new indicators to perform better technical analysis and improve their trading game — one such indicator is the Range Expansion Index (REI). What do you know about this indicator?…
Ascertaining the market condition is often necessary but can be very difficult, which is why the choppiness index can be very powerful for your trading. What do you know about the choppiness index? The Choppiness Index is an indicator created…
There are many technical analysis indicators available on many trading platforms for analyzing the markets, and one of them is the market facilitation index (MFI). What do you know about this indicator and how to use it? The market facilitation…
In the fast-paced financial trading world, using the most responsive indicators for your technical analysis is key to catching the right moves in time, and this is where the Adaptive Laguerre Filter comes in. What do you know about this…
Determining the right mix of assets to help you reach your short-term and long-term financial goals is the key to building a winning investment portfolio. For many years, financial advisors and experts recommend the 60/40 portfolio because of its simplicity…
What are Market Timing Strategies? Plenty of investors try to time the market. Most are unsuccessful due to a number of reasons. Thus, most investors should not time the market. However, most of the failures can be attributed to a…
A commodity trading advisor (CTA) is an individual or organization that provides personalized advice and services related to trading in futures contracts, commodity options, and retail off-exchange forex contracts or swaps. It could also be a fund that uses a…
High low strategy
The ATR indicator is useful on its own and can be used to develop an Average True Range trading strategy. The Average True Range (ATR) was developed by Welles Wilder in the 1970s. In his famous book called New Concepts…
If you have ever looked at a stock chart, you would know that stock prices often swing about, which is why some people trade the swings for quick profits rather than wait out the inevitable downturns. However, most stocks rise…
The Ichimoku trading strategy uses a technical analysis indicator that defines support and resistance levels, shows the trend direction, and gauges the momentum of the trend. It does this by plotting multiple averages on the price chart, which forms a…
A trader in a losing stock position has only a few options: they can close the trade at a loss and look for opportunities elsewhere; they can hold the losing position for a while and hope that the price will…
Ray Dalio’s All Weather Portfolio is a pretty well-known portfolio, and for good reasons, in our opinion. Ray Dalio and his team at Bridgewater Associates constructed the All Weather Portfolio to withstand every economic environment (and shocks) possible. What exactly…
David Swensen was the President and Chief Investment Officer of Yale University endowment from the mid-1980s until his death in May 2021. Swensen, along with Dean Takahashi, invented The Yale Model. Let’s take a look at the David Swensen Portfolio…
Many traders look at the gold and S&P 500 ratio. The ratio can be used to create sector rotation strategies are popular. One of the reasons is the anticipation of better and more efficient capital allocation, and perhaps a second…
The dual momentum trading strategy by Gary Antonacci, what is that about? As the Oracle of Omaha, Warren Buffett, once said: “Trying to time the market is the number one mistake to avoid.” It is almost impossible to consistently time…
Python is one of the most popular programming languages in finance. It is widely used for data analysis, machine learning and, of course, backtesting trading strategies. Today we will show you how to calculate and backtest a MACD, Moving Average…
The lower highs and lower lows pattern signals a downtrend. Is this likely to continue or reverse? What is the meaning of a lower highs and lower lows pattern? In almost all markets, the lower high and lower low pattern…
There are many exponential moving average (EMA) strategies, but the 50 EMA strategy is one of the most commonly used among traders in different financial markets. Let’s take a look at this 50 EMA trading strategy. The 50 EMA strategy…
For swing and mean-reversion traders, tracking the price swings and spotting potential reversals is key to finding trade setups, and the Stochastic Momentum Index (SMI) can be a useful tool in this regard. What do you know about this indicator?…
There are some indicators you can easily combine to get the best out of the market. The moving average convergence divergence (MACD) and Bollinger Bands combination is one of the best synergic indicator combinations. You can use it to trade…
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, and this has, of course, given the IBS a nice…
By combining Cryptocurrency Trading Strategies with a cool head and a bit of patience, you might ride the waves of cryptocurrency trading like a pro. So, buckle up, stay focused, and let’s look at crypto trading strategies! This article breaks…
Keltner Channel Trading Strategy (Keltner Bands) is a lesser-known sibling of the Bollinger Bands which are widely used and pretty famous. Despite being rather unknown, Keltner Bands are still included in most software packages. In this article, we take a…
Among the tools available for analyzing the markets, oscillators are some of the most interesting for tracking the momentum of individual price swings — one that seems to do a damn good job is the Pretty Good Oscillator (PGO). What…
The domain of breakout trading strategies opens doors to profit from possible changes in market trends. Breakouts are key indicators of trend shifts, providing traders with chances for financial gain. Our detailed guide will take you through multiple approaches enabling…
There are many indicators and tools for technical analysis, but only a few have leading properties like the Fibonacci tools, which is why Fibonacci trading is popular among traders. But how do you trade a Fibonacci trading strategy? A Fibonacci…
The SPY Small Caps Rotation System focuses on investing in small-cap stocks, typically valued between $250 million and $2 billion. This strategy aims to maximize growth by reallocating funds into these stocks during optimal market conditions. In this article, you…
The 200-day moving average trading strategy is frequently used as an indicator in the financial markets. Who hasn’t heard about the “Death Cross”, “support at the moving averages”, “the trend is positive because the price is above the averages”, etc.? …
In this article, we will discuss an indicator called SuperTrend, which has a very promising name. So, what is the Supertrend Indicator Trading Strategy exactly? The SuperTrend indicator is a type of trend following indicator that was created by trader…
In the world of technical analysis, the Relative Strength Index (RSI) is a widely used momentum oscillator that measures the speed and change of price movements. Larry Connors, a prominent trader and author, introduced a variation known as the Cumulative…
The RSI trading strategy identifies overbought and oversold conditions in markets, measuring momentum on a scale. Readings above indicate overbought, while below signify oversold. Traders monitor divergence between price and RSI for potential reversals, often confirming with other indicators. Effective…
Can you make money on a bullish or bearish AAII market sentiment indicator? When the pessimists turn optimistic and the optimists turn pessimistic, a bottom or top is formed. If you understand market sentiment and where traders and investors feel…
In the fast-paced world of financial trading, traders are always looking for better indicators to improve their analysis of the markets — one such indicator is the Gaussian Filter. What do you know about this indicator? The Gaussian filter is…
The NAAIM Exposure Index is becoming a popular indicator for tracking investor sentiment. But what is it about? Compiled by the National Association of Active Investment Managers (NAAIM), the NAAIM Exposure Index represents the average exposure to US Equity markets…
NFP reports are known to induce volatility in the financial markets, as well as set the tone for price movements each month. So, it is in your interest as a trader to know how to read the NFP report and…
When stock markets are overbought, we can expect weaker returns than average over the next few days. But in the long term, returns gravitate toward the average returns. Thus, overbought stock markets only predict short-term results – not long-term. This…
When stock markets are oversold, we can expect strong returns over the next few days. But in the long term, returns gravitate toward the average returns. Thus, oversold stock markets only predict short-term results, not long-term. We do a backtest…
As traders, we rely on different tools to analyze price movements and gain meaningful insights into the nature and direction of the market — one tool that can help show the direction of price movements is the Displaced Moving Average…
Navigating the erratic world of financial markets can be a daunting task, which is why traders are always seeking better tools to improve their technical analysis — one such tool is the Twiggs Money Flow indicator. What do you know…
Inflation is one of the most popular and important economic indicators. It is monitored by everyone — businesses, financial regulators, and investors. Not only does it guide regulators in their policies, but also, it affects businesses, which in turn, influences…
ChatGPT has been on everyone’s mind lately. People are discussing how it can improve productivity or help you solve programming bugs. But can ChatGPT be used for backtesting? ChatGPT can be helpful in trading as a tool for analyzing market…
Here is a Tradingview Pine Script Strategy. TradingView is a popular tool with many traders due to its vast array of tools and features. TradingView uses its native code language, Pine Script, to implement indicators and backtest trading strategies. Here…
In trading, there are times, especially for swing trading, when we may want to focus on individual price swings rather than the trend — one indicator that can help with that is the David Varadi Oscillator. What do you know…
There are many seasonals in the financial markets. Today, we are looking at the performance for stocks, bonds, and gold when a new year starts. Is there a start of the year rally? Related reading: Start of the year rally…
As the year is drawing to a close, you might have heard about an end-of-year stock market rally. Is this seasonality true, fiction, or myth? The end of year rally is no myth or fiction: research shows that stocks tend to…
Frequently adjusting your trading indicator to suit the ever-changing conditions of financial markets can be a daunting task, even for seasoned traders, which is why adaptive indicators, like the Adaptive Cyber Cycle, can be a game changer. What do you…
Christmas Day is one of the federal holidays in the US. But how does it affect the US financial markets? Is there a Santa Claus rally in stocks? Can we develop trading strategies for this holiday season? Our trading strategy…
Is it correct that copper is a leading indicator for stocks? Can we make a copper vs. stocks strategy? No, copper is most likely not a good leading indicator for stocks. Our copper vs. stocks trading strategy might be due…
The Santa Claus Rally in DAX and Euro Stoxx 50 Our backtests show significantly better performance during the Christmas season and the end of the year. The Santa Claus rally is no myth in Europe, either! The end of year…
In the fast-paced world of financial markets, leading indicators that can predict market movements and show where to buy or sell are hard to come by, which is what makes the Volume Zone Oscillator (VZO) a very special tool in…
In technical analysis of the financial markets, volume indicators serve as a valuable tool for evaluating the level of activity in a market to ascertain the force behind a price move — one such volume indicator is the Volume Accumulation…
Active traders, especially swing traders like to use oscillators to track the momentum of individual price swings to know when to get in at the beginning of an impulse swing — one oscillator that does a good job is the…
In the forex market, the USD/CHF pair, also known as the ‘Swissie’, is one of the most traded currency pairs. This is an accomplishment for such a small country like Switzerland. The currency pair is regarded as a measure of…
Are you in search of a GBPCHF forex trading strategy? This article tackles the challenge of trading the GBPCHF pair, offering you tactics aimed at reaping potential profits. We’ll explore important economic indicators, look into specific trading strategies like swing…
If you’re searching for a practical eurusd trading strategy, you’re in the right place. Our guide cuts to the core, offering an examination of EUR/USD’s price action, essential economic reports influencing its volatility, and specific tools like Fibonacci retracement levels…
The EURCAD forex strategy depends on precision and timing, just like any trading strategy. This article strips away the excess, providing you with an actionable strategy for the EURCAD’s volatility and market idiosyncrasies. Get ready to deploy technical and fundamental…
Seeking an AUDCAD forex trading strategy? This guide will provide you with effective trading methods tailored to the AUDCAD currency pair. You’ll discover how commodity prices, interest rates, and other factors impact AUDCAD. We’ll also explore key trading strategies like…
AUDUSD is one of the most popular currency pairs for trading in the forex market. Forex is not easy to trade and make money on, but this article provides an example of a trading strategy with trading rules and performance….
Looking for an EURNZD forex trading strategy for better returns? This post will walk you through the most effective trading techniques and knowledge for the EURNZD pair. You’ll learn how to understand economic indicators, manage risk effectively, and implement strategies…
In the forex market, there are many currency pairs you can trade, and the USDCAD trading pair is one of the most actively traded. With the right trading strategy, you can get the best out of this major currency pair….
Looking for an effective GBP NZD trading strategy? This guide is for you. The GBP/NZD pair is known for its high volatility, offering numerous trading opportunities. In this article, we cover the key factors influencing this pair, various GBP NZD…
While there are many currency pairs you can trade in the forex market, a CHFJPY trading strategy would allow you to get the best out of the CHF and JPY markets. If you know how to get it right, the…
Searching for CAD/CHF strategy trading tips? You’re in the right place. This guide covers live rates, key factors influencing the CAD/CHF pair, recent performance, and effective trading strategies. Whether you’re a beginner or an experienced trader, you’ll find valuable insights…
The influence of the Chinese yuan in the global financial markets is growing, and even though China does not float the currency freely like other major currencies, you may want to have a USDCNY trading strategy. How do you add…
Wondering how to succeed in NZD/CAD trading? In this article, you’ll find crucial tips and strategies tailored for the NZD CAD pair. We’ll explore key factors affecting its exchange rate, important technical indicators, and effective trading strategies to help you…
To trade the Forex GBP/USD pair, you need a solid GBP/USD trading strategy due to the currency pair’s volatility and market swings. This guide delivers that by showing you a backtested trading strategy with trading rules. This will hopefully give…
Curious about NZD/CHF trading? This guide will provide you with everything you need to get started, from market analysis to effective trading strategies. Learn how to trade the New Zealand Dollar against the Swiss Franc. Key Takeaways Understanding NZD CHF…
Are you looking to master NZD/USD trading? Effective strategies might depend on timing, risk management, and a deep understanding of market forces. However, we believe you should quantify a strategy into quantified trading rules so it can be backtested. This…
Curious about how to trade GBP CAD trading effectively? This guide covers everything you need to know—from the best trading strategies and timing to key economic indicators that impact the GBP/CAD currency pair. Key Takeaways Importance of GBP/CAD in Forex…
If you’re approaching the EUR/GBP forex market, what are the effective strategies you need to succeed? This article aims to guide you through a few trading techniques, from identifying market sentiment to the most opportune times to execute trades –…
Looking for an effective GBP/AUD trading strategy? This article covers actionable strategies and key factors that influence GBP/AUD. Learn various trading approaches and tools designed for the GBP/AUD pair. Key Takeaways Understanding the GBP/AUD Currency Pair The GBP/AUD currency pair…
Effective AUDJPY trading strategies could be very valuable because of strategy diversification. This article outlines key techniques, risk management practices, and entry and exit pointers you need to trade this volatile pair successfully. We even provide a backtested trading strategy….
To tradethe EUR/AUD market requires a robust set of trading strategies to exploit its distinctive movements. This article presents EURAUD trading strategies, designed to help you capitalize on the pair’s unique interplay of European and Australian economic indicators. Whether you’re…
Seeking practical EURCHF trading strategies? In this article, we dive straight into the tactics and analysis you need to trade the EUR/CHF currency pair effectively. We even provide you with a backtested trading strategy. We unravel the art of reading…
We show you how to master the AUDNZD trading strategy with techniques designed for the distinct volatility and correlation. This guide reveals how to apply technical analysis accurately, manage risks wisely, why you should quantify trading rules, and time your…
If you’re searching for an effective CADJPY trading strategy, look no further. Equip yourself with targeted analytical techniques, entry and exit tactics, and robust risk controls for the CADJPY Forex pair. This article delivers actionable ideas to strengthen your trading…
The euro (EUR) and yen (JPY) are the most traded currencies after the USD. Like the USD, the euro and yen are also held as reserve currencies by different countries. But what is EURJPY in trading? Is it possible to…
The AUDCHF currency pair represents the exchange rate between the Australian Dollar (AUD) and the Swiss Franc (CHF). It showcases the comparative strength of the two currencies based on the economic performance of Australia and Switzerland. As both economies are…
