There are many patterns that occur in the financial markets, and smart traders who can identify them use them to their advantage. This is the case with the stairs, which are commonly seen patterns on price charts. But what is the stairs trading strategy? The Stairs Trading strategy is a technical analysis method that is…
Can you make money swing trading futures. Swing trading is a unique style of market speculation where positions are held beyond the trading day but not more than a few days or weeks. This style can be used to trade virtually any financial market that allows price speculation. Since the futures market allows traders to…
What is a good trading strategy? A good trading strategy is simple and has few parameters, is not curve fitted, has a rising equity curve, has a profit factor above 2, and has passed out of sample testing. Thus, a good trading strategy is not necessarily a strategy that gives you a high CAGR, returns,…
A portfolio of trading strategies You need to build a portfolio of trading strategies that differ in markets, time frames, and types. Why? Because you want to have a portfolio of trading strategies that both complement each other and make the portfolio diversified and uncorrelated. In order to do this, you preferably need to test…
Why are penny stocks bad? The internet is flooded with arguments and courses on how to get rich in penny stocks. Hence, penny stocks attract a lot of attention, both among investors and traders, but also among scammers, unfortunately. The traps in penny stocks are many, and we recommend staying away from penny stocks. These…
We have previously published an article on using RSI on SPY (relative strength index). The RSI has proven to be a valuable indicator/tool for mean reversion in the main stock indices. Today we present an RSI trading strategy. In this article, we look at how the RSI performs on QQQ – an RSI mean reversion…
I currently reread Victor Niederhoffer’s The Eduction of A Speculator. I regard this book as one of the best I have ever read. It’s not an easy read, but it completely changed my mindset for the better 20 years ago. What makes this a good book? Because it explains the foundation and principles for successful…
Market Neutral Momentum Trading Strategy Over the last weeks I have written three articles about monthly momentum in TLT, SPY, and EEM: Monthly momentum in SPY, TLT, and EEM. Monthly momentum in SPY and TLT. Monthly momentum in SPY and EEM. The first two strategies seem to perform reasonably well. Many investors seek to minimize…
There are many ways to utilize monthly momentum in SPY and EEM: I have over the last week written two articles about momentum: The third looks at rotating between the two most popular stock ETFs: SPY and EEM. The assumptions are like this: Pretty simple, and the equity curve looks like this: The strategy outperforms…
This article presents an ETF rotation strategy. Sector rotation is popular and this is not without merit. The idea is to be in the sector that shows the best recent momentum. Today we present an ETF momentum rotation trading strategy based on monthly data in EEM, SPY, and TLT. In this short article, we give…
