In the ever-evolving world of financial markets, traders and investors are constantly on the lookout for innovative and unconventional ways to gain a competitive edge. This quest for novel approaches to trading has given rise to a plethora of exotic and alternative trading strategies. In this article, we embark on a fascinating journey through an…
Today we want to delve into John Ehler’s Trading Strategy and an indicator created by this famous author to investigate financial instruments quantitatively. In August 2006, John Ehlers published an article in Stocks & Commodities titled Modeling The Market = Building Trading Strategies writing about the Instantaneous Trendline. We want to backtest and see how…
In this article, we make a backtest of a specific trading strategy and compare the results by using three different entries: Let’s start: Entry types Let’s look at the different options for when and how to enter a position: 1. Entry on the next day open Depending on when the buy or sell signal is…
When should you sell a stock or position? Many articles and videos deal with when to buy, but less focus is on when to sell. When should you sell? What method should you use to sell? What is the best time to sell a position? How long should you wait until you sell? Let’s look…
We are strong believers in seasonal trading strategies, and one of the best seasonalities is specific trading days of the month. Most articles about seasonal trading refer to calendar days, but a much more accurate trading term is the trading day. The calendar and trading days can be completely different. So, what is the best…
We have in a previous article determined that there is a positive holiday effect in stocks. This effect happens on the days before the holiday. But is there an opposite effect? Is there a post-holiday effect in the stock market? What is a holiday? First, we need to define what a holiday is: To…
Would you like to know what the worst-performing group of stocks is? One certain type of stock has not made any money since JFK was president. That is 60 years. Yes, you read it right. 60 years! Any long-term mindset won’t help you if you invest in this type of stocks. Which type of stocks…
Investors are always looking for ways to magnify their returns, and leveraged ETFs seem to promise that, which is why they are becoming very popular among both institutional and retail investors. Ever since their emergence, leveraged ETFs have received a lot of media attention that an uninformed may think they are all gains and no…
Let’s look at an interesting and peculiar pattern in GDX – gold miners: We have in many articles mentioned the tailwind from the overnight edge. We use the following trading rules: [/am4show] This strategy has returned the following equity curve: The average gain per trade is 0.12%, and it’s not tradable as it is. But…
Bund” refers to the German government bond, specifically the 10-year government bond issued by the Federal Republic of Germany. It is considered one of the safest investments in the world because of Germany’s strong credit rating and stable economy. Investors often use Bunds as a benchmark for other fixed-income securities in Europe. Trading strategies involving…
