S&P 500 (SPY)
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 1993):
It’s a pretty good edge over the next few days.
If we exit after 3 days, we get the following equity curve:
Instrument/asset Gold Miners (GDX) Trading rules The trading rules of the edge read like this (please also backtest yourself – you might find a way to improve it): But at the close of OPEX day (option expirations) in December. Results Below is the table if we hold for N days: A pretty strong edge! If…
If you trade stocks or any other financial market, you will often be confronted with that temptation: to buy more when the price goes lower. On the one part, you may have a cheaper entry price, but on the other hand, you may actually be doubling down on a losing trade. How do you approach…
You might have saved up some money and decided to invest. You already know what you want to invest in, but now you have another decision: When should you invest? If you research the subject, you will likely come across two main strategies: one-time investment and dollar cost averaging. But what are these approaches, and…
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: 30 Seasonal Trading Strategies Analysis Start of the year rally – trading rules In this article, we make the following…
Covered calls trading strategy looks tempting when interest rates and dividend yields are down because many investors and traders look for additional ways to generate “income”. Many pundits promise both good returns and “income” if you issue call options on your positions – so-called covered calls. Can you make money on covered calls? Are covered…
Instrument/asset Gold (GLD) Trading rules The trading rules of the edge read like this (please also backtest yourself – you might find a way to improve it): Today’s low is higher than yesterday’s high; and Yesterday’s 5-day RSI was below 40. Results Below is the table if we hold for N days since GLD’s inception:…
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