The Merriman Ultimate Buy And Hold Portfolio by Paul Merriman aims to diversify investments as widely as possible across asset classes (bonds & stocks), countries, company size, and valuation. The goal is to have aa portfolio that achieves good risk-adjusted returns. You implement Paul Merriman Ultimate Buy and Hold Portfolio strategy by using ETFs only….
This article presents a stock trading system that only trades stocks. It has beaten buy&hold and (10.4% vs 7.5%) with a much lower drawdown. This is the equity curve and the complete trading rules are presented further down in the article: What is a mean reversion system? Mean reversion is a trading strategy based on…
Usually, timing strategies generate a lot of false signals that cause traders to lose money. To avoid that, today we will look at a strategy that does not generate false signals and can successfully predict the end of a bear market: A bull market signal. The bull signal is the following: 18 consecutive closes above…
An article about VIX trading strategies and explaining: what is the VIX and how does it work? The VIX is a fear index and shows the price you need to pay to get insurance in the stock market. In this article, we explain what the VIX is, how it works, whether or not it can…
Stock and sector rotation is when you switch between different asset classes or stocks. In this case, between different asset classes. We did a backtest involving SPY, TLT, and LQD. It’s a strategy backtested by many and in different ways, but we decided to make our own twist to it. We have previously published several…
We already discussed how to create and backtest a trading strategy using Chat GPT in a prior article and video, but today we are going to skip the idea generation stage and jump right into the trading rules and backtest: How to make a Bollinger Band strategy using ChatGPT. Bollinger bands are one of the…
Here is a trading strategy that are rotating between S&P500 and Treasuries. There exist many strategies that rotate between S&P 500 and Treasuries. Over the weekend we had a look at the white paper of Meb Fabe called A Quantitative Approach to Tactical Asset Allocation. On page 20, Meb Faber is referring to a long-term…
Let’s test the strategy Turnaround Tuesday but only in bear markets. Does that work? Turnaround Tuesday is one trading idea that has worked very well for many decades. We have covered it on our website multiple times. We are now in a bear market. Some asset classes are crashing. As of writing, stocks are down…
One of the more peculiar effects of the S&P 500 is the huge difference in performance between odd and even days. It turns out that one type of calendar day is much better than the other. Can we develop a trading strategy based on odd and even days? This article shows a trading strategy that…
What are Market Timing Strategies? Plenty of investors try to time the market. Most are unsuccessful due to a number of reasons. Thus, most investors should not time the market. However, most of the failures can be attributed to a few reasons. In this article, we look at some elements that we believe are required…
