How To Find and Generate Trading Ideas. Once in a while, I receive e-mails from readers wondering how they can generate trading ideas to test. How to generate trading ideas is one of the most important issues for a trader. Furthermore, you need to backtest a lot! Trading requires many ideas In order to find…
Some weeks ago I wrote about a potential daytrading strategy in XLP. This is a similar test done in SPY: Yesterday the formula (c-l)/(h-l) must have been lower than 0.1. Today SPY opens down. If these two simple criteria are fulfilled, then go long at the open and hold until close. This is the result…
I’m a subscriber to The Economist. Being a libertarian, this is the best newspaper there is, even though it’s not perfect and over the years have become a bit more leftist (?). Still, I strongly recommend it. In the January 12th, 2013 issue there is an interesting article on page 59 (I can’t find a…
S&P 500 has historically a strong tendency to revert to the mean. I’m looking to find a way to fade the gap. My research has indicated that fading the gap is best after a strong move in either direction. Thus: The high and low divergence day trading strategy Here are the criteria for a reasonable…
2012 is history. It was a decent year for me both personally and professionally. Trading wise, I improved a lot compared to 2011 which was a disaster and kind of a wasted year. 2012 showed a really nice development in the second half. I managed to pull some solid days in my day trading. Remarkably,…
Jay Kaeppel wrote an interesting post about gold stocks: The greatest gold stock system you’ll probably never use. I have a twist to this system which I’ve been trading for weeks. Since Kaeppel has published it I might as well publish it myself. And it’s so simple, and the results are so astonishing I have…
The price of oil is seen as a hedge against a falling dollar. If the dollar falls, the oil price should rise (or vice versa). What happens the next day if they go in tandem? Let’s test an oil and dollar trading strategy. Trading Rules [am4show have=’p2;p3;p58;p59;p130;p138;’ user_error=’Premium Post Access’ guest_error=’Premium Posts’] If the dollar…
Gold gaps up and down a lot, much more than stock indices. Based on the size of the gap in gold, we develop a gold gap strategy. Previously I have only day traded stocks and traded SPY/ES. Over the last couple of months, I have also had a look at GLD, the ETF that tracks…
The overnight edge in the stock market is well documented: By using the tailwind from the close until the next open, you can develop some good short-term trading strategies. In this article, I present 4 overnight trading strategies in the S&P 500. The strategies buy at the close and sell the next day’s open. Because…
On the internet and in the blogosphere there are a lot of articles saying trend following is dead. The reason is as usual due to lack of returns over some period of time. Is trend-following dead (again)? Or is this just the normal out-of-favor cycle that shakes out many managers before trend-following starts working (again)?…
