S&P 500 (SPX)
The trading rules of the edge read like this (please also backtest yourself – you might find a way to improve it):
Trading performance if exit after N-days (100 000 and compounding since 1960):
It seems like the edge is getting weaker (?). That said, the average gain has been 0.51% and the win rate is 82%.
Python has become a popular language among traders and financial analysts due to its versatility and extensive data analysis and visualization libraries. One powerful application of Python in the trading world is backtesting strategies, allowing traders to evaluate the performance of their trading ideas using historical data. Today we show you a Python Bollinger Band…
Trading SPY And S&P 500 Using VIX (VIX Trading Strategies). The VIX is a popular measure of the implied volatility of S&P 500 index options. Put shortly, the VIX is a mean reversion indicator: when the risk premium increases (VIX is rising in value) it might be wise to buy stocks and sell when VIX…
In trading, divergence means that the price swings and the indicator movement are not in phase. A divergence signal is generated when the price is making a higher swing high but the indicator is making a lower high, or the price is making a lower swing low when the indicator is making a higher swing…
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 is the All-Weather Portfolio? Which assets are included? How has it performed? What was the…
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 believe they give an excellent visualization of the price action, even though we never use…
What are the Donchian Channels and do they work on stocks? The Donchian Channels were invented by Richard Donchian decades ago. They are still a popular tool for traders, but the markets have changed a lot since Donchian’s invention. The Donchian Channels (or bands) are formed by two bands: an upper band based on the…
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