End Of Month Effect in NIFTY 50 – Unraveling Turn of the Month Trends

Our backtests suggest that NIFTY 50 has a positive end of month effect. A variation of the inputs does not change the result dramatically, thus the end of month effect seems reasonably robust. The end of month effect is well documented in the US stock market, sometimes referred to as the turn of the month…

Daily Trading Edge #36

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): Buy at the close the day before the monthly job report; and The close must be below the 200-day moving average.   Results Trading performance if we exit…

E-Mini Russell 2000 Trading Strategy – Backtest

An E-mini Russell 2000 Index futures strategy is the methodology or technique you can use to profitably trade Russell 2000 Index futures, and this often includes technical and fundamental analyses for market timing and risk management. E-mini Russell 2000 Index futures are financial derivative products that represent a contract to buy or sell a specified…

Heating Oil Futures Trading Strategy – Rules, Setup, Backtest, and Returns Analysis

Heating oil is a low-viscosity liquid produced from refining crude oil, which is used almost exclusively for heating residential and commercial buildings. The demand for heating oil rises as the temperature drops during the winter, which makes it a highly seasonal commodity. Trading on some futures exchanges, heating oil provides opportunities for speculation and hedging….

Cocoa Trading Strategy – Backtest and Futures Trading Example

Once used as a form of currency in Central and South America before the Spanish conquest, cocoa is now used to produce chocolate and some of the most popular beverages in the world. Cocoa belongs to the soft commodity category, and it commands a multibillion-dollar industry. With cocoa futures representing the benchmark for the world…

Weekly Trading Strategy – Backtest with Weekly Charts, Returns, and Performance Analysis

Most traders tend to focus on the daily and intraday charts. Only a few get to look at the weekly chart, let alone trade from them. But the weekly chart may provide more consistent setups that are easier to trade if you have the patients to wait for them. Want to know about weekly trading…

Australian Trading Strategies – Formulation, Backtest, and Performance Assessment

As the world has become more connected online and many regions are opening up their financial markets to the global investing community, diversifying your investment portfolio into other economies has never been easier. The Australian market is a simple choice for portfolio diversification. Can we make profitable Australian trading strategies? Yes, backtesting reveals a few…

Random Walk Trading Strategy – Understanding and Backtest Example

Burton Gordon Malkiel in his famous book — A Random Walk Down Wall Street — popularized the random walk model of the financial markets. According to him, the market moves randomly and its direction cannot be predicted with technical or technical analyses. But is the market truly random, and what is a random walk trading…

Growth Stock Trading Strategy: Backtest, Example, and Insights

When it comes to investing, there are many strategies you can adopt. And if you want to make your money work harder, it’s important to choose the right investment approach. A growth stock trading strategy is a method of stock investing that focuses on companies that are expected to grow at an above-average rate compared…

India Trading Strategies — Backtest Results and Examples

One of the benefits of globalization is that you can tap into investment opportunities in different parts of the world. As one of the fast-growing economies, India and its stock markets provide opportunities for investors who seek opportunities in the Asian markets. But what would be an Indian market trading strategy? Apart from trading the…