Introduction to Forex Trading: Forex trading, short for foreign exchange trading, is the practice of buying and selling currencies in the global financial market for financial gains. It is a decentralized marketplace where participants trade one currency for another, aiming to profit from fluctuations in exchange rates. Forex trading is significant due to its immense…
Tyler’s Pinwheel Portfolio is a passive index portfolio that aims to diversify investments across stocks, REITs, bonds, gold and cash. The Pinwheel Portfolio strategy can be implemented with 8 ETFs. You do not need to pick individual stocks, bonds, REITs, gold and cash. According to our backtests over the past 16 years, the The Pinwheel…
There are many momentum and trend indicators out there, but the Qstick indicator is not one that shows up very often. What is the Qstick indicator? The Qstick indicator is a technical indicator that consists of two moving averages and it is used to identify trends. it can be used to create a Qstick Indicator…
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…
If you have a potential trading strategy, which market are you going to backtest it on? And what do you do if it works on S&P 500 but not so well on Russell 2000? This article uses the same trading strategy on four different US stock market indices to show the differences in returns and…
The Clyatt Sandwich Portfolio made by Bob Clyatt aims to diversify investments across stocks, REITs, bonds, and cash. The Clyatt Sandwich Portfolio strategy can be implemented with 9 ETFs. You do not need to pick individual stocks and bonds. According to our backtests over the past 16 years, the Clyatt Sandwich Portfolio has the following…
(Peel Off Trading Strategies) Many traders focus on creating the best entry strategies and don’t give much thought to their exit methods. There are many ways to exit a trade, but one strategy used by most traders is the “peel off” method. You may be wondering what that means. The “peel off” method (a term…
Below is a summary of all the “different” trading strategies we have presented and backtested: We also want to remind you of the hundreds of trading strategies we have backtested since this blog started in 2012.
In a previous article, we highlighted the difference of changing the entry method: entry on the next day open (1) vs. entry on the same day close (2) vs. entry on the next day with a limit order (3). For the comparison we created a portfolio with a maximum of 10 positions each and compared…
Market timing is not easy, and if you get it wrong, it might lead to poor compounding (in the long run). We did a backtest to show what happens when you: One backtest removed the ten best days from 1960 until today for S&P 500 (replaced with zero performance that day), and the other…
