Pair Trading Strategy in Liquid ETFs: A Comprehensive Guide (Formula, Backtest, and Real-life Example)

Pair Trading Strategy in Liquid ETFs: A Comprehensive Guide (Formula, Backtest, and Real-life Example)

Many traders are pair trading ETFs. Pairs trading is one method of making your strategy less exposed to market fluctuations. Most traders trade stocks, but you can, of course, also trade ETFs. If you are trading ETFs you indirectly have a wide diversification, albeit to different segments of the stock market. In this article, we…

Retirement and FIRE: Assessing the Likelihood of Financial Setbacks (Sequence Risk, Diversification, and Withdrawal Rate)

This article looks at how likely you are to go broke as retired or FIRE. Low interest rates make many pensioners and those who retire early (FIRE) allocate more and more capital to risky stocks. Many tend to forget that a bear market can last for a decade – even longer. What happens to the…

Trading in France – Day Trading and Swing Trading Perspectives

With a GDP of about 2.8 trillion dollars, France is the world’s fifth-largest economy and the second-largest economy in Europe, after Germany. It is home to the headquarters of the biggest stock exchange in Europe, so when it comes to financial trading, France is a popular clime for day trading and swing trading. Want to know…

Technical Indicators Strategy and Systems Analysis (Backtest And Example)

For most technical traders, the use of technical indicator strategy is a reliable way to trade the financial markets. Combined with the right risk management tools, it could help a trader gain more insight into price trends and forecast how the price might move in the future. Want to know about technical indicator strategy? A…

Symmetrical Triangle Trading Strategy Analysis (Backtest And Example)

If you are a price action trader, chart patterns, such as the symmetrical triangle, could be one of the best tricks in your toolbox. The pattern forms in all timeframes and can be used for any style of trading. However, to trade this pattern successfully, you need a symmetrical triangle trading strategy. What is it?…

Higher Highs and Higher Lows Pattern Trading Strategy & Insights – Rules, Setup, Backtest

The higher highs and higher lows pattern signals an uptrend. Is this likely to continue or reverse? In almost all markets, the higher high and higher low pattern signals weak future short-term gains. Unfortunately, it doesn’t work as a short strategy. The higher highs and higher lows pattern The pattern is pretty self-explanatory, but let’s…

Dollar Cost Averaging vs. Lump Sum Strategy Backtest – Managing Sequence of Return Risk

Most investors and traders are aware of the differences between dollar-cost averaging vs lump sum investing. But what role do luck and randomness play in determining the best strategy – dollar-cost averaging or lump sum investing? In this article, we dig a bit deeper and turn the returns over the last twenty years upside down…

Market Breadth Trading Strategies (Backtest and Examples)

Market breadth indicators provide different information about the stock market in a way that other market indicators do not. But what is the market breadth? Market breadth indicates the total number of stocks that are rising in price relative to the number of stocks that are falling in price on a given stock exchange. The…