It’s paramount that you you include reinvested dividends in your backtesting. To show you why, we backtested a trading strategy using two different datasets: on dataset not including reinvested dividends and one including reinvested dividends. The difference is huge: the first dataset ended at 554 000 dollars, while the the dataset with reinvested dividends ended…
Backtesting is the cornerstone of this website. We aim to quantify everything about the stock market, hence the name. We have conducted plenty of reader polls, and you find them all in our article about trading strategies statistics, truths, realities, and facts. We made a poll on Twitter recently. We asked the following questions for…
Yes, the SPY (SPDR S&P 500 ETF) tends to closely follow the movements of the ES (E-mini S&P 500 futures contract). The ES futures contract is based on the S&P 500 index and is a popular instrument for trading the broader market. The SPY ETF, on the other hand, is an exchange-traded fund that tracks…
Yahoo!Finance is one of the most popular websites for investors. It offers various market data on stocks, bonds, currencies, and cryptocurrencies. It also offers market news, reports and analysis, options, and fundamental data, which sets it apart from some of its competitors. yfinance is a Python library that allows users to download historical data from…
Many of the best traders use some kind of mechanical trading strategies and rules when trading. “Mechanical” implies that the rules are based on objective rules, usually quantified data. The trader should follow these rules precisely without hesitation or emotion. In this respect, mechanical trading is the complete opposite of discretionary trading. In this article,…
I have received some e-mails about how I allocate my capital. I admit that this is a problem and quite a difficult task. Sometimes I have no positions, suddenly all my signals trigger and the allocation becomes a problem. My aim is to trade different stocks that correlate as little as possible. Of course, that…
