I have been backtesting swing trading (holding positions 1-5 days) for many years. But because I have done fairly well in day trading, I didn’t really put a lot of effort into swing trading. I never really started. But when my day trading got sour in 2011, I was kind of “forced” to try it…
A recent Twitter poll on our Twitter profile shed light on the challenges traders face, with an astonishing 50% of respondents citing “Finding good strategies” as their biggest hurdle. Here’s the result: We’ll be honest: beforehand, we were pretty sure dealing with losses would be the biggest trading challenge. But we were wrong, and it…
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 (trading strategy). The Chande momentum oscillator is a technical indicator that measures momentum through the…
Is a big trading range bullish or bearish? We look at the performance of stocks, bonds, and gold after a big trading range: a big range yesterday, here is what comes next. What is a big trading range? A big trading range is a period of time during which the price of a security fluctuates…
With the emergence of personal computers and online trading via electronic communication networks (ECNs), you may think of tape reading as something ancient. While the term brings up memories of trading legends like Jesse Livermore, it is worth noting that, tape reading is still a part of the toolkit of day traders and scalpers in…
Is a narrow range bullish or bearish? We look at the performance of stocks, bonds, and gold after a narrow range: a narrow range yesterday, here is what comes next. What is a narrow range? A narrow range in the market is a period of time (of your choice) when the price of a security…
Traders are always on the lookout for patterns and indicators that can help them predict future stock market returns. The one we are going to present to you today involves the economic relationship between stocks and currencies: is EUR/JPY a leading indicator for stocks? Due to investor psychology, EUR/JPY is often considered a leading indicator…
Today, we present a new strategy bundle that contains three 24-hour day trading strategies. What is a 24-hour day trading strategy? That is a strategy that buys at the close and holds the position for 24 hours until the next close. Thus, you are only invested for 24 hours. The strategies are published as monthly…
With the world getting increasingly connected online, it is now easier to diversify your investment portfolio into other economies. Asia is home to tens of thousands of investment opportunities; you can choose to invest in anything from safe large-cap stocks in Singapore to high-growth frontier market stocks in Vietnam. But what are Asian trading strategies?…
For this backtest, we use the IBS indicator that measures where the asset’s close in relation to the price action that week (not day!). This has proven to be a good indicator for stocks because it’s a mean reversion indicator. We want to find out the following: The markets sold off and closed at the…
