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 lowest volume over the last 10 days; and The close is above the 200-day moving average; and The close is higher than the day before. 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): The lowest range over the last 3 days; and Today is an inside day; and The close is below the 200-day moving average. Results Trading performance if…
There are certain trading strategies that you can trade based on price action alone. One of them is the HHLL trading strategy. You may be wondering what the HHLL trading strategy is. Here you go: The HHLL trading strategy is a price action (based on price movements) reversal strategy that involves buying an instrument after…
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): IBS is lower than 0.2; and The close is above the 200-day moving average; and TLT’s IBS is above 0.8. Results Trading performance if exit after N-days:…
A commodity trading advisor (CTA) is an individual or organization that provides personalized advice and services related to trading in futures contracts, commodity options, and retail off-exchange forex contracts or swaps. It could also be a fund that uses a managed futures strategy, investing in futures and options contracts. The commodity market is highly specialized…
The financial market moves in waves — it rises and falls — which is why you hear slogans like “Buy the dip” and “Sell the rip.” Today, we will focus on the “Sell the rip” strategy. What does it mean? Sell the rip refers to a trading strategy that aims to sell an asset (either…
In trading, divergence means that the price swings and the indicator movement are not in phase. A divergence signal is generated when the price is making a higher swing high but the indicator is making a lower high, or the price is making a lower swing low when the indicator is making a higher swing…
When it comes to trade entry and exit, most traders tend to think in singular terms — one shot in and one shot out. But breaking the position size into multiple smaller trade sizes and scaling in gradually may offer a better average entry price. Want to know about the scale-in trading strategy? In trading,…
If you have been trading or just following the gold and silver markets, you must have heard about the gold-silver ratio. What does the gold-silver chart ratio strategy mean? The gold-silver chart ratio strategy is a technique for trading the two precious metals (silver and gold) using the relationship between their prices. The gold/silver ratio…
Technical indicators help us analyze stocks to know how to trade them, but they focus on the external price action of individual stocks. While this is not bad in itself, knowing the general market sentiment is equally important. This is where the Arms Index comes in. But what is the index about? The Arms index…
