A big part of a successful trading strategy is seasonal trading. As we are about to see, this is especially true in commodities. Today we will look at a seasonal trading strategy for silver where we invest only in the best-performing months. Since 2001, it has outperformed buy and hold by more than 4% annually. …
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): TweezerTop (candlestick). Results Trading performance if exit after N-days (100 000 and compounding): A pretty strong negative edge over the next days after a Tweezer Top. We…
Peter Lynch is a famous but retired money manager. Lynch managed the Magellan Fund of Fidelity from 1977 to 1990 with outstanding returns: more than double the S&P 500’s return. Lynch made 29.2% annual returns for his investors and retired at his peak in 1990. He was a proponent of value investing, but is perhaps…
Today we will look at a strategy published by Michael Gayed in his paper An Intermarket Approach to Beta Rotation: The Strategy, Signal and Power of Utilities. Gayed’s paper is among the most downloaded papers on the SSRN website. The strategy consists of a weekly rotation system between the SPY and XLU based on the…
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’s close is an FOMC meeting day. Results Trading performance if exit after N-days: The edge is negative, perhaps with a short trade. Improved Trading Edge As…
Momentum trading is the opposite of buying low and selling high: momentum is about buying strength. Can we make a successful momentum strategy for S&P 500? Yes, a momentum strategy for the S&P 500 works. We use monthly bars and a simple moving average strategy crossover system. Let’s show you why a momentum strategy works:…
Golden Cross Trading Strategy is famous and a cited phenomenon in the media. In this article, we look at the performance of the Golden Cross in the S&P 500. A Golden Cross involves two moving averages – one short and one long. We use the 50 and 200-day moving averages. A Golden Cross happens when…
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 Monday; and The close sets a new 5-day high of the close; and The VIX index is higher than Friday (yesterday). Results Below is the…
Instrument/asset International stocks ex. USA (EFA) Trading rules The trading rules of the edge read like this (please also backtest yourself – you might find a way to improve it): Buy at the close on the third Friday of December; and Sell at the close of the year. Results Trading performance since inception in 2001:…
Ray Dalio’s All Weather Portfolio is a pretty well-known portfolio, and for good reasons, in our opinion. Ray Dalio and his team at Bridgewater Associates constructed the All Weather Portfolio to withstand every economic environment (and shocks) possible. What exactly is the All-Weather Portfolio? Which assets are included? How has it performed? What was the…
