The NR7 trading strategy is a narrow-range strategy that is both well-known and popular. If you do a search on the internet, you get multiple hits on the strategy. To our knowledge, the strategy was first developed by Tony Crabel as long back as 1990. The NR7 is a volatility strategy but enters on a…
Stocks can be classified into four factors: value, size, investment, and quality. It is well-known that value stocks perform well, and small caps tend to outperform large caps. However, what about the quality factor trading strategy? The quality factor can be described as investing in stocks of safe, profitable, growing, and well-managed companies. This sounds…
The coming week is the OPEX week of October. We are entering a historically strong seasonal tendency in the stock market (from OCT to APR), and it might be interesting to find out how stocks have performed this particular week in October. Trading Rules [am4show have=’p2;p3;p58;p59;p130;p138;’ user_error=’Premium Post Access’ guest_error=’Premium Posts’] Let’s backtest by being…
The moving averages are one of the most used technical indicators in the market. However, there are many types of moving averages. Today we are going to be looking at the exponential moving average: 20 EMA trading strategy. The exponential moving average is a type of moving average (MA) that places a greater weight and…
Technical indicators help traders in timing the market, and the CCI (Commodity Channel Index is one of the indicators you can effectively use to time the momentum in the market. But what exactly is the CCI trading strategy, and what does it tell you about the market? The CCI (Commodity Channel Index) is a technical…
Is it possible to use the ADX indicator (Average Directional Movement Index) (DMI) to find a profitable ADX trading strategy? This article looks at the ADX indicator where we make some historical backtest to evaluate and analyze. The adx indicator was developed by Welles Wilder and released in his book in 1978 called New Concepts…
The utility sector has taken a major hit over the last couple of weeks. Below is XLU, the ETF that tracks the sector: But as you can see, it’s not the first time it has “collapsed”, but it has caught the headlines. However, it was even worse in October 2022. Let’s look at what happens…
The end of month/early month strategy is well-documented in the stock market. This is called the turn-of-the-month strategy. This effect exists in most “risky” assets. Also in crypto. Let’s backtest the following trading rules: Trading Rules [am4show have=’p2;p3;p58;p59;p130;p138;’ user_error=’Premium Post Access’ guest_error=’Premium Posts’] This has returned the following equity curve for Bitcoin: The 109 trades…
In May 2015, Micheal A. Gayed published a paper called Lumber: Worth Its Weight in Gold Offense and Defense in Active Portfolio Management (free download at SSRN). We used that paper to make a profitable lumber/gold ratio trading strategy for stocks and bonds. Let’s explain the strategy’s reasoning, trading rules, backtest, performance, and results. Related…
Traders use a wide range of indicators when trading. Among the most popular are the momentum and mean-reversion indicators, but there also exist indicators that measure volatility, such as the average true range. Let’s make an average true range (ATR) trading strategy in Python. The Average True Range (ATR) is a volatility indicator that, unlike other…
