The price of oil is seen as a hedge against a falling dollar. If the dollar falls, the oil price should rise (or vice versa). What happens the next day if they go in tandem? Let’s test an oil and dollar trading strategy. Trading Rules [am4show have=’p2;p3;p58;p59;p130;p138;’ user_error=’Premium Post Access’ guest_error=’Premium Posts’] If the dollar…
One famous seasonality in the oil market is the tendency for the oil price to rise on Fridays. Let’s see the Friday seasonality in the oil price. Trading Rules [am4show have=’p2;p3;p58;p59;p130;p138;’ user_error=’Premium Post Access’ guest_error=’Premium Posts’] We buy the day before – Thursday. It seems like just buying on any Thursday’s close is not such…
The 5-Day Low And Low of The Range Trading Strategy Here is the strategy in plain English: Trading Rules [am4show have=’p2;p3;p58;p59;p130;p138;’ user_error=’Premium Post Access’ guest_error=’Premium Posts’] IBS must be lower than 0.25. The close must be lower than the lowest low the previous 5 days. If those two simple criteria are met, go long at…
Trading SPY And S&P 500 Using VIX (VIX Trading Strategies). The VIX is a popular measure of the implied volatility of S&P 500 index options. Put shortly, the VIX is a mean reversion indicator: when the risk premium increases (VIX is rising in value) it might be wise to buy stocks and sell when VIX…
Let’s test a MACD-histogram trading strategy. This article looks at the MACD-histogram. For a primer on this indicator please read this article: I’m trading some strategies based on mean reversion on a sample of 77 ETFs. Those ETFs are the most liquid ones. One of the strategies I trade is based on MACD-Histogram. It’s a…
