Option Trading in EEM: 20 Essential Considerations

Introduction Options trading in EEM is an increasingly popular way for investors to gain exposure to the market. Trading options gives traders the opportunity to make profits from both rising and falling markets, and with options, traders can also use leverage to increase their potential profits. While options trading in EEM can be profitable, it…

Short Squeeze Trading Strategy (Backtest, Setup, Rules and Example)

There are times when the prices of stocks move as a result of what other investors are doing rather than based on the company’s underlying business fundamentals. One such event is the short squeeze. A short squeeze happens when there is a high volume of short positions (betting that the stock would decline), but instead,…

S&P Midcap Trading Strategy (S&P 400 Index): Backtest, Video Overview, and Practical Example

Stock indexes are widely used as benchmarks for tracking a basket of stocks within a particular sector or segment of the market. Investors use the indexes to assess the overall health of the sector, they compare the performance of their own holdings, or they simply have a sector trading strategy. In this article, we look…

S&P 500 Equal-Weight Trading Strategy: Backtesting and Practical Example

In January 2003, the S&P 500 Equal Weight Index (EWI) was created, and since then, you can trade ETFs that track the index. But what does this equal weight S&P 500 index mean? As the name implies, the EWI is an equal-weight version of the popular S&P 500 Index. But instead of weighting each stock…

Contrarian Trading Strategy — What Is It? (Backtest And Example)

One of Warren Buffett’s investment advice is, “Be fearful when others are greedy and greedy when others are fearful!” That basically explains the contrarian trading strategy. The contrarian trading strategy is one that goes against the prevailing sentiment in the market. In other words, it is a trading method that seeks to trade in the…

Energy Sector Trading Strategy: Rules, Backtest, and Practical Example

Energy sector trading is the process of gaining exposure to multiple stocks in the energy sector as a means of diversification and generating profits. Investment can be done by buying an ETF that tracks the sector or by building a portfolio of energy stocks. If you want to trade energy stocks for short-term trading, the…

Healthcare Sector Trading Strategy: Example and Backtesting Insights

Stocks in the healthcare sector are affected by various factors, but they tend to be recession-defensive because health is essential to life. In this article, we look at a healthcare sector trading strategy. The healthcare sector might add diversification to your portfolio of trading strategies. The reason is that many of the stocks in this…

The Best Programming Language for Developing Algorithmic Trading Strategies and Systems

Algorithmic trading has become increasingly popular in recent years, and for good reason. The ability to use computer algorithms to analyze market data and make trading decisions has proven to be highly effective and efficient. However, to develop an algorithmic trading system, you need to choose a programming language that is capable of handling large…

Technology Sector Trading Strategy: Rules, Backtest, and Practical Example

The information technology sector has the highest weighting in the S&P 500 index, representing more than a quarter of the index’s market cap. Over the last decade, the sector has been “hot” and had a spectacular bull market. In this article, we take a brief look at the biggest stocks in the sector, and we…