Candlestick Pattern – Doji Trading Strategy (Backtest and Historical Performance)

Doji trading strategies are popular and the doji pattern is one of the most famous candlestick patterns. Candlestick patterns have several “derivatives” and can be used together with other bars. There are at least 64 different candlestick patterns that have been given a name, please read our article about how many candlestick patterns are there?…

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…

Conclusions About Trend-Following Trading Systems The S&P 500

Does trend following work in the S&P 500? We recently came across an article called Breaking into the Blackbox: Trend Following, Stop Losses, and the Frequency of Trading: The Case of the S&P 500. It’s written by academics, but in plain language without complicated math, so everyone can understand. In this article, we look at…

A Simple Trend Following System and Strategy In The S&P 500 (By Meb Faber And Paul Tudor Jones)

Trend following the S&P 500 is probably not the sexiest thing to do. Back in 2012 Meb Faber published a paper called A Quantitative Approach To Tactical Asset Allocation in the Journal of Wealth Management. Meb Faber found the 200-day moving average useful and decided to look at the following simple trend following system in…

A Monthly Momentum Strategy In ETFs (Sector/ETF Rotation Strategy In EEM, SPY, And TLT)

This article presents an ETF rotation strategy. Sector rotation is popular and this is not without merit. The idea is to be in the sector that shows the best recent momentum. Today we present an ETF momentum rotation trading strategy based on monthly data in EEM, SPY, and TLT. ETF momentum strategies are one of…

S&P 500 Mean Reversion Using IBS and RSI (Classical Mean Reversion Strategy S&P 500)

Below is a simple and easy trading strategy to implement in SPY or the S&P 500: The classical mean reversion strategy in the S&P 500 In plain English the strategy reads like this: IBS (internal bar strength) must be lower than 0.25 (using daily bars). RSI (21) must be below 45. If 1 and 2…

Russell 2000 Rebalancing Trading Strategy (Backtest)

Russell 2000 rebalancing at the end of June is an important event. It’s important because it leads to potential imbalances, but more importantly, the Russell 2000 has shown abnormal outperformance over these few days. The seasonality and effect are so strong it seems to be a tradeable Russell 2000 rebalancing trading strategy. In this article,…

What Happens After An “Extraordinary” Big Fall in the S&P 500? (Trading Strategy)

What Happens After An “Extraordinary” Big Fall in the S&P 500? (Trading Strategy)

What happens after an extraordinary big fall in SPY? Let’s find out and test by using some simple variables. To measure a big fall we use the average difference between the high and the low over the last 25 days. Calculate the average H-L range over the last 25 days (in percent). If the ETF…

4 Overnight Trading Strategies In The S&P 500 (Night Strategies From Close To Open)

The overnight edge in the stock market is well documented: By using the tailwind from the close until the next open, you can develop some good short-term trading strategies. In this article, I present 4 overnight trading strategies in the S&P 500. The strategies buy at the close and sell the next day’s open. Because…

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…

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…