What Are Trading Rules? (Which One Is Important?)

Trading rules are the heart of a mechanical or algorithmic trader. This article helps you understand the importance of specific trading rules, making you better prepared to face the markets. It’s a trading GPS! We have made plenty of trading rules over the years, and you find many among our memberships. Let’s get straight to…

Tesla’s Stock Price Booms Every Time This Happens (Strategy)

Let’s look at at price pattern that shows that Tesla’s stock price booms every time this happens.  It doesn’t happen often, but it has worked well so far: Tesla’s Stock Price Booms Every Time This Happens The trading rules are simple: [am4show have=’p2;p3;p58;p59;p130;p138;’ user_error=’Premium Post Access’ guest_error=’Premium Posts’] When the 14-day RSI drops below 25,…

Trading Edge 67

Instrument/asset S&P 500 (SPY) Trading rules The trading rules of the edge read like this (please also backtest yourself – you might find a way to improve it): Today is a down day; and The close is above the 200-day moving average; and Yesterday’s close was the fifth in a row up; and Yesterday’s close…

Averaging Down Trading Strategy (Statistics, Facts, & Historical Backtest)

If you trade stocks or any other financial market, you will often be confronted with that temptation: to buy more when the price goes lower. On the one part, you may have a cheaper entry price, but on the other hand, you may actually be doubling down on a losing trade. How do you approach…

Bottom Timing Trading Strategy For SP 500 (Statistics, Facts, & Historical Backtest)

Finding a bottom timing trading strategy for the stock market is one wet dream for many traders. Unfortunately, only a few manage to nail the exact bottom. We suggest another type of strategy: We find that buying the S&P 500 some time after the official start of a recession generates an average return of 22%…

Sell Rosh Hashanah – Buy Yom Kippur Trading Strategy (Rules And Backtest)

The phrase “Sell Rosh Hashanah, Buy Yom Kippur” has been a cornerstone of trading “folklore” for decades, at least since Eisenhower was president. Its origins trace back to a belief that September, when these Jewish holidays typically fall, is a tumultuous period for stocks. This notion is not without merit. Historical data reveals that September…

Hard Red Winter Wheat (KW) Trading Strategy – Backtest

Hard Red Winter Wheat trading strategy refers to the methodologies and techniques you can use to trade Hard Red Winter Wheat futures contracts profitably. Hard Red Winter (HRW) wheat futures are contracts to receive or deliver the specified quantity of HRW wheat on a future date, at a pre-agreed price. The contract trades on the…

Deflation Trading Strategy (Backtest, Example, Python Code)

A deflation trading strategy refers to the methods and techniques you can use to invest and make money during a period of deflation. This includes how to spot the asset to trade, the direction to trade, and how to spread your investments. Examples of deflation trading strategies include buying real assets, like real estate, short-selling…

Quarterly Trading Strategy (Rules, Backtest, Performance)

Today, we show you the performance data of a quarterly trading strategy that boasts substantially better risk-adjusted returns than buy and hold:  Buy and hold returns 7.2%, while our quarterly trading strategy compounds at 9.8% if we adjust for much less time invested compared to buy and hold.  We remind you today’s backtest is just…