There are countless technical indicators that traders look at. Among the most popular that try to gauge momentum are the RSI and the stochastic indicator. However, today, we will learn about one that is not so well-known: Chande momentum oscillator (trading strategy). The Chande momentum oscillator is a technical indicator that measures momentum through the…
Python has become a popular language among traders and financial analysts due to its versatility and extensive data analysis and visualization libraries. One powerful application of Python in the trading world is backtesting strategies, allowing traders to evaluate the performance of their trading ideas using historical data. Today we show you a Python Bollinger Band…
Python is the most popular programming language to backtest trading strategies. However, most people are afraid of it or don’t know where to start, while others think it’s difficult to learn. Today we will show you how to backtest an RSI trading strategy with a few lines of code, step by step, for beginners. As…
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): RSI(2) is above 95; and IBS is above 0.9; and The close is above the 200-day moving average. The trading edge behaves slightly differently depending on the…
Python is one of the most popular programming languages in finance. It is widely used for data analysis, machine learning and, of course, backtesting trading strategies. Today we will show you how to calculate and backtest a MACD, Moving Average Convergence/Divergence (MACD), trading strategy using Python. As you will see, it doesn’t take a computer…
We are approaching the end of September; historically, the end and beginning of a month have been positive. We have covered this anomaly multiple times for the S&P 500/SPY. Let’s find out how Dow Jones Industrial and its ETF (DIA) has performed since its inception in 1998. We use the following trading rules: Trading Rules…
The relationship between interest rates and stocks is crucial to understand if you are investing in the stock or bond market. How does the S&P 500 perform when interest rates are rising? Interest rates and the stock market have an inverse relationship. When interest rates rise, share prices fall, and vice versa. This is a…
Nowadays, data manipulation and programming are essential in finance for analyzing large datasets of historical data, modeling different financial scenarios, and, of course, backtesting trading strategies. But what do they use to do all this? The answer is Python. Python is the most popular programming language in finance, but most people think it is complicated…
Volume trading strategy is a trading method that involves analyzing the volume of shares or contracts that are being traded in a particular stock or market. The idea behind this strategy is that high trading volume can indicate strong buying or selling pressure, which can be used to make trading decisions. Successful trading is based…
Inflation is one of the most popular and important economic indicators. It is monitored by everyone — businesses, financial regulators, and investors. Not only does it guide regulators in their policies, but also, it affects businesses, which in turn, influences investors. But what exactly is inflation, and how does it affect stocks? And more importantly,…
