Chapter 6 of Larry Connors‘ High Probability Trading contains a trading strategy called Multiple Days Up (MDU) And Multiple Days Down (MDD). The book was published in 2009, the trading tests were done until 31st of December 2008, and it’s time to test and check how the strategy has performed since then. You can find…
Larry Connors and Cesar Alvarez revealed a trading strategy called Double Seven in their book Short Term Trading Strategies That Work. This is a fairly simple system that at the time worked very well among a wide range of ETFs. The book was published in 2010, and it would be interesting to look at the…
What are junk bonds? The term, junk bonds, is seen in a negative way. While junk bonds are considered risky investments, they may not be as bad as the negative reputation suggests. Let’s take a look at junk bonds, their pros, and their cons. Junk bonds are bonds issued by companies that are not in…
Gold has historically had a weekend effect. Is the edge big enough to be profitable? Trading Rules [am4show have=’p2;p3;p58;p59;p130;p138;’ user_error=’Premium Post Access’ guest_error=’Premium Posts’] Let’s test the performance of owning gold/GLD from the close of every Thursday until the open on Monday: If we backtest the strategy on GLD, we get the following equity curve:…
It costs money to trade, and one of the costs is commissions to your broker. No one works for free, but luckily costs have gone down a lot the last two decades. What is a commission trading, and how important is it? A commission refers to a fee imposed by a broker or investment advisor…
What is the Super Bowl Indicator? We believe it’s a fun but totally spurious and unreliable predictor of stock market performance. Let’s explain what the indicator is about and how it has performed. The Super Bowl Indicator trading strategy The Super Bowl Indicator is a popular but extremely unscientific theory that suggests that the stock…
What is an Order Block? An order block is a term used in trading to describe a specific price area on a chart where significant buying or selling activity has occurred. It represents a consolidation of orders, creating a temporary imbalance in supply and demand. Within this block, market participants place their buy or sell…
For many, owning a business or buying expensive real estate is out of the question. An alternative to growing your net worth over time is to invest in financial instruments such as stocks and bonds. In this article, we look at the stock vs. bond investment strategy. Various investment strategies use stocks and bonds in…
When it comes to the world of finance, evaluating trading strategies is a critical aspect of a trader’s success. Whether one is an experienced trader or just beginning their journey into the market, understanding the key metrics and principles behind evaluating trading strategies is essential for making informed decisions and managing risks effectively. What are…
Introduction: Understanding Dumb Money in Trading The term “dumb money” in Dumb Money trading strategy refers to a group of investors who are considered to be less sophisticated or experienced than other participants in the market. These investors may make trading decisions based on emotions, FOMO, herd mentality, or a lack of understanding of how…
