What are the worst days of the year for trading stocks? Let’s find out and test from the year 2000. We did a backtest where we optimized the month and trading day to find the WORST trading days for the S&P 500 from the year 2000. We remind you that the TRADING day is different…
This article shows a rotation strategy between healthcare stocks and the S&P 500. The trading idea is pretty simple, but it beats the buy and hold of the S&P 500. Moreover, we believe this strategy is more rational than at first glance. Keep reading for more details: It’s based on seasonalities among the two assets/sectors…
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): The month is December; and The calendar day is more than; and The close is at least 1% lower than yesterday’s close. Results Trading performance if exit…
This article presents a stock trading system that only trades stocks. It has beaten buy&hold and (10.4% vs 7.5%) with a much lower drawdown. This is the equity curve and the complete trading rules are presented further down in the article: What is a mean reversion system? Mean reversion is a trading strategy based on…
Usually, timing strategies generate a lot of false signals that cause traders to lose money. To avoid that, today we will look at a strategy that does not generate false signals and can successfully predict the end of a bear market: A bull market signal. The bull signal is the following: 18 consecutive closes above…
Stock and sector rotation is when you switch between different asset classes or stocks. In this case, between different asset classes. We did a backtest involving SPY, TLT, and LQD. It’s a strategy backtested by many and in different ways, but we decided to make our own twist to it. We have previously published several…
We already discussed how to create and backtest a trading strategy using Chat GPT in a prior article and video, but today we are going to skip the idea generation stage and jump right into the trading rules and backtest: How to make a Bollinger Band strategy using ChatGPT. Bollinger bands are one of the…
Here is a trading strategy that are rotating between S&P500 and Treasuries. There exist many strategies that rotate between S&P 500 and Treasuries. Over the weekend we had a look at the white paper of Meb Fabe called A Quantitative Approach to Tactical Asset Allocation. On page 20, Meb Faber is referring to a long-term…
Let’s test the strategy Turnaround Tuesday but only in bear markets. Does that work? Turnaround Tuesday is one trading idea that has worked very well for many decades. We have covered it on our website multiple times. We are now in a bear market. Some asset classes are crashing. As of writing, stocks are down…
One of the more peculiar effects of the S&P 500 is the huge difference in performance between odd and even days. It turns out that one type of calendar day is much better than the other. Can we develop a trading strategy based on odd and even days? This article shows a trading strategy that…
