It’s possible to make Friday Jobs Report trading strategies. One of the most important macro numbers on this planet is the monthly US job report. As a bonus, at the end of this article, we provide you with the code for the monthly jobs report for both Amibroker and Tradestation (And Plain English for Python…
The Bernstein Coward’s Portfolio by Bill Bernstein aims to diversify investments as widely as possible across asset classes (bonds & stocks), countries, company size, and valuation. Bill Bernstein Coward’s Portfolio strategy can be implemented with only 9 ETFs, of which 60% are stock ETFs and 40% are bond ETFs. You do not need to pick…
The end-of-month bias (effect) in stocks is well documented. But how strong is the bias? We conduct a simple test to show how strong the effect is. The return in the S&P 500 at the end of the month is so strong that it explains almost the majority of the gains over the last 22…
In 2022 the bond market experienced the worst drawdown in its history, and since then volatility has been off the charts. It seems like rates are moving like tech stocks did in 2000. Luckily, this can be seen through the volatility index of the bond market, the MOVE index. The MOVE index is to the…
One of the best edges in the stock market is the overnight edge – the price action from the close until tomorrow’s morning (or close). Is it still working? Can a trend filter improve performance? Empirical evidence – the overnight edge: The overnight edge is best illustrated by a simple backtest and a chart. This…
We did a backtest where we optimized the month and calendar day to find the best calendar days for the S&P 500. We backtested the result by entering at the close of calendar day N and selling at the close the next day. In other words, this is an overnight trade. The table below contains…
Today we are presenting three free mean reversion strategies. They were partially published on this website a few years back, and today we make some minor adjustments and present their performance on different ETFs. Furthermore, we discuss why mean reversion works and which markets are best for mean reversion trading strategies, and also some historical…
What happens in the coming days after a very bad Friday when the stock market goes down? Let’s backtest and find out if we can make any money from it. Friday 22nd of April was a very bad day in the stock market. The S&P 500 dropped 2.75%, something that doesn’t happen so frequently: the…
What are the worst days of the year for trading stocks? Let’s find out and test from the year 2000. We did a backtest where we optimized the month and trading day to find the WORST trading days for the S&P 500 from the year 2000. We remind you that the TRADING day is different…
This article shows a rotation strategy between healthcare stocks and the S&P 500. The trading idea is pretty simple, but it beats the buy and hold of the S&P 500. Moreover, we believe this strategy is more rational than at first glance. Keep reading for more details: It’s based on seasonalities among the two assets/sectors…
