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): SPY opens at a 20-day high; and Ends lower with an IBS reading below 0.25. Results Trading performance if we exit after N-days since SPY’s inception…
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 Monday after Thanksgiving is a down day. Results Trading performance if exit after N-days (100 000 and compounding): There are not many trades, but as you…
There are many exponential moving average (EMA) strategies, but the 50 EMA strategy is one of the most commonly used among traders in different financial markets. Let’s take a look at this 50 EMA trading strategy. The 50 EMA strategy is a technical analysis trading strategy that uses the 50-day EMA to identify the direction…
Some signals and indicators try to predict regime changes or future returns in the stock market. One of the most famous is the Breakaway Momentum indicator from Walter Deemer. Another one is the JP Morgan VIX Buy signal. The JP Morgan VIX Buy signal is a well-known pattern developed by JPMorgan strategists, led by Mislav…
Instrument/asset Gold price (GLD) 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 of third last trading day of the year; and Sell at the last print of the year (hold for two days). Results Below…
The Best 6 Months Timing Model strategy by Yale Hirsch is an active and simple strategy that uses market timings and can be implemented using any asset class and portfolio. Using this strategy, you do not need to be in the market 100% of the time and expose yourself to additional risk, unlike a passive/lazy…
September is known for being the worst month of the year for stocks. But is it always like this? We ran some backtests: [am4show have=’p2;p3;p58;p59;p130;p138;’ user_error=’Premium Post Access’ guest_error=’Premium Posts’] First, let’s backtest the performance of all months since 1960: The first column shows the month, and it’s pretty obvious that September is the worst,…
The dual momentum trading strategy by Gary Antonacci, what is that about? As the Oracle of Omaha, Warren Buffett, once said: “Trying to time the market is the number one mistake to avoid.” It is almost impossible to consistently time the market — you will either be buying or selling too late or too early…
One of the strongest seasonal anomalies in the stock market is the end-of-month effect. Let’s have a look at how it performs in August/September: The trading rules for the strategy are like this: Trading Rules [am4show have=’p2;p3;p58;p59;p130;p138;’ user_error=’Premium Post Access’ guest_error=’Premium Posts’] We go long at the close on the fifth last trading day of…
A trend reversal is a change in the direction of the price trend of an asset. This change in direction can be to the upside or downside. The trend reversal strategy is any analysis or trading technique a trader uses to identify the end of one trend and the beginning of another. Trend-reversal strategies can…
