Many traders want to take the leap and go full time. Being a full-time employee while your real passion is trading, can drain your energy. It’s frustrating because your mind is elsewhere: the dream of freedom, independence, and becoming wealthy while you are working from wherever you like. No commuting, no boss, no 9-5 stress….
Rob Hannah has published a potential strategy on his blog Quantifiable Edges. The strategy buys when the S&P 500 makes a new high. I put a twist to it and made the following strategy: Trading Rules [am4show have=’p2;p3;p58;p59;p130;p138;’ user_error=’Premium Post Access’ guest_error=’Premium Posts’] Today’s intraday high must be higher than the previous day’s five-day high….
The internal bar strength is defined as follows: (close-low)/(high-low). This indicator is very useful on mean revertive trading instruments, like for example XLP. This article contains a simple but quite effective trading strategy using the internal bar strength indicator: The internal bar strength trading strategy (This article was first published in January 2018. Thus, 5…
Russell 2000 rebalancing at the end of June is an important event. It’s important because it leads to potential imbalances, but more importantly, the Russell 2000 has shown abnormal outperformance over these few days. The seasonality and effect are so strong it seems to be a tradeable Russell 2000 rebalancing trading strategy. In this article,…
Sell in May and go away must be one of the most famous phrases in the stock market. But is it correct? This is the first time I test this. There is a lot of academic empirical evidence showing this anomaly has been in existence for many decades, both in the USA and elsewhere. I…
My previous post on how I screw up by second-guessing my strategies made me change my trading habits (for the better). I have taken two actions for my day trading: After the open, I make sure my Excel program is running (I enter positions completely automatically). Then I go outside to walk my dog or…
The Cost of Second Guessing Trading Strategies (Why You Need A Written Trading Plan and Log) During my twenty years of trading, I have learned that the best recipe for success is to follow and execute my trading plan. The cost of second-guessing my written trading strategies shows why you need a trading plan. In…
SPY is very mean revertive and RSI is a mean revertive indicator. Does this mean that RSI works on SPY? In this article, we test an RSI SPY trading strategy. It turns out that our hypothesis is correct: the RSI works well on SPY. Even better, we improve the strategy by adding one extra indicator….
Today we’ll present a strategy that we first wrote about some years ago – an article called big moves on Mondays – but we have made a small twist to the strategy. We call the strategy for the Monday Reversal Trading Strategy and it works pretty well on the S&P 500 and Nasdaq. Additionally, we…
The strategy published in this article has similarities with Larry Connors’ trading strategy called the double 7. Connors’ strategy is very simple with just two rules. The fewer rules, the better, because less probability of curve fitting. The strategy is based on 7 days low (and high for exit), but in my testing, it seems…
