Many investors focus on searching for seasonalities in the US stock market. However, seasonal patterns can also be exploited in international stock markets. Today we will show you a seasonal trading strategy for the German stock market. It is based on previous performance and has performed better than buy and hold since inception. In this…
The trading rules of the edge read like this (please also backtest yourself – you might find a way to improve it): Thanksgiving has historically been a good week for stocks, but the Monday after Thanksgiving has been very poor. We make the following trading rules: We buy at the close of Black Friday; and…
In this article, we backtest Larry Connors‘ 3 day high/low Method/Strategy. How has the strategy performed since it was revealed in his book in 2009? The 3 day high/low method/strategy performed well in Connors’ book, and it still works pretty well today 12 years later. Larry Connors and Cesar Alvarez published a book called High…
Today we test Larry Connors‘ R3 strategy and we continue backtesting the trading strategies Larry Connors and his team published in 2009 in a book called High Probability ETF Trading. All the strategies were tested on a basket of 20 liquid ETFs. The previous articles can be found on our page containing many different quantified…
In chapter 5 of Larry Connors‘ book High Probability Trading, published in 2009, there is a trading strategy called %b strategy. The book contains many strategies which we test in chronological order. 12 years have passed since the book was published and it could be interesting to see if the strategies are still performing well….
Chapter 6 of Larry Connors‘ High Probability Trading contains a trading strategy called Multiple Days Up (MDU) And Multiple Days Down (MDD). The book was published in 2009, the trading tests were done until 31st of December 2008, and it’s time to test and check how the strategy has performed since then. You can find…
Larry Connors and Cesar Alvarez revealed a trading strategy called Double Seven in their book Short Term Trading Strategies That Work. This is a fairly simple system that at the time worked very well among a wide range of ETFs. The book was published in 2010, and it would be interesting to look at the…
Gold has historically had a weekend effect. Is the edge big enough to be profitable? Trading Rules [am4show have=’p2;p3;p58;p59;p130;p138;’ user_error=’Premium Post Access’ guest_error=’Premium Posts’] Let’s test the performance of owning gold/GLD from the close of every Thursday until the open on Monday: If we backtest the strategy on GLD, we get the following equity curve:…
For many, owning a business or buying expensive real estate is out of the question. An alternative to growing your net worth over time is to invest in financial instruments such as stocks and bonds. In this article, we look at the stock vs. bond investment strategy. Various investment strategies use stocks and bonds in…
There are many indicators or patterns that try to predict whether the stock market is going to crash or rise. Today we will be looking at one that generated few signals over the years, but anticipated major bear markets. It’s called the Kiss of Death trading strategy. The Kiss of Death is a strong sell…
