Gold Moving Average Strategy and Trend following systems work. Below we present a very simple trend following system in gold: In this article, we look at how you can use the 12-month (250-day) moving average to outperform the gold price. Gold spends most of the time going nowhere, and it seems the 12-month moving average does…
We have backtested many strategies with certain trading rules. You find performance metrics, facts, and figures on this page. You can purchase strategies individually (one by one), as strategy bundles (updated in 2024), or via our 4 memberships. However, we don’t assist in your choices and don’t give any recommendations. We don’t give investment advice…
How to use moving average trading strategies are widely discussed and used in the media and likewise frequently used by analysts when making calls about the future. What is a moving average and can we find profitable moving average strategies on stocks? Do moving average strategies work? Backtests reveal that the most popular moving averages…
What happens to stocks when bonds go up (what happens to stocks when interest rates go down)? Any stock investor or trader should have a basic understanding of the relationship between stocks and interest rates. Why? Because the interest rates influence investors’ risk appetite. When interest rates are high, you need to pay more for…
The relationship between stocks and interest rates is at the center of financial theory. Why? Because the interest rates determine the value of stocks. High rates equal less appetite for owning risky assets, and investors will only own risky assets if they are compensated for taking this risk. What happens to stocks when bonds go…
Meb Faber, a famous money manager and writer, has several times stated he is a trend follower at heart. Back in 2015, he published an article about momentum and trend-following strategy called Meb Faber’s Three-Way Model in gold, stocks, and bonds– a model that Meb Faber (Mebane Faber) found in some research from Ned Davis…
There are plenty of potential option strategies, and one of them is selling puts. In this article, we look at how you can make money by writing or selling puts. Is selling puts a good trading strategy? Selling puts might be good for you if you know what you are doing, and it could be…
Using artificial intelligence (AI) in stock trading has become increasingly popular in recent years. ChatGPT, a highly advanced language model based on the GPT-3 architecture, is an example of AI that can help traders analyze vast amounts of data at a speed and accuracy beyond human capabilities. This article will explore the benefits and challenges…
When stock markets are oversold, we can expect strong returns over the next few days. But in the long term, returns gravitate toward the average returns. Thus, oversold stock markets only predict short-term results, not long-term. We do a backtest to prove our point. When there is “blood in the street” the media takes interest…
Is the stock market a zero-sum game? You frequently hear media refer to games and markets as zero-sum games. Yes, we define the stock market as a zero-sum game, both in the short and in the long term, although it technically is incorrect. A zero-sum game is where one person’s gain is another person’s loss…
