Random Walk Trading Strategy – Understanding and Backtest Example

Burton Gordon Malkiel in his famous book — A Random Walk Down Wall Street — popularized the random walk model of the financial markets. According to him, the market moves randomly and its direction cannot be predicted with technical or technical analyses. But is the market truly random, and what is a random walk trading…

Rabbit Trail Channel Trading Strategy – Backtest and Illustrative Example

There are different ways to skin a cat, they say. This is true in trading as well. While some find their edge in the market with the help of trading indicators, others trade the price action, and the rabbit trail channel trading strategy is one of their arsenals. But what is this rabbit trail channel…

Price Channel Pattern Strategy – Backtest and Illustrative Example

Most traders attach trendlines across one swing side of a trend to delineate its direction. But to appreciate the individual price swings within a trend, you may need to have a price channel to see the up-and-down swinging movement of the price as it trends upward, downward, or horizontally. Now, you may be wondering: what…

Sweden Index Trading Strategy (OMX30 Futures) — Unveiling with Backtest and Example

Sweden has a vibrant stock market, with many interesting companies like AstraZeneca, Atlas Copco AB, and Ericsson. You can track the performance of the Swedish market with the OMX Stockholm 30 and OMX Stockholm PI indexes. OMX Stockholm PI is the composite index of the Swedish stock market, consisting of all the shares listed on…

CAGR – What Is It And Why Is It Relevant For Trading Strategies? (Performance Analysis)

What is CAGR? CAGR is an abbreviation of Compound Annual Growth Rate, and is a common measure of growth that is used to measure the returns on investments over several time periods on an annual basis. It can be used on a range of securities such as mutual funds, shares or bonds but is also used…

Pennant Trading Strategy – Explained and Backtested Insights

Chart patterns are one of the most powerful for analyzing price action. They help you to understand the rice structure and the state of the trend. Pennants are one of the common chart patterns traders look out for, but what is a pennant trading strategy? In price chart analysis, a pennant is a continuation chart…

Over-The-Counter Trading Strategy – What Is It? (Backtest, Performance, and Analysis)

Not all securities trade on standard and regulated exchanges. In fact, not even all stocks trade on a standard exchange. Some trade on over-the-counter marketplaces. Wondering what an over-the-counter marketplace is, and how over-the-counter trading works? Can you make an over the counter trading strategy? Over-the-counter (OTC) trading refers to trading that is done directly…

Nadex Trading Strategies (Backtest, Example, and Tips)

There are different ways to participate in the financial markets, and some of them have been structured to involve just predicting the market direction. One such easy but risky trading method is Nadex trading. Wondering what Nadex trading strategies are? Nadex trading is a form of derivative trading that allows traders to make short-term bets…

Meme Stock Trading Strategy – Explained and Backtested

Meme stocks seem to be on everyone’s mind recently, with constant mentions in market summaries and analyses. These stocks gain traction on social media platforms, such as Reddit and Twitter (please follow us on Twitter), often sparking lively debate. While this is a new social phenomenon in stock investing, what is the meme stock trading…