The 9 EMA trading strategy is a widely used technical analysis indicator strategy among traders to identify short-term market trends. It involves the use of the 9-period exponential moving average to generate buy and sell signals. The strategy is easy to implement and can be applied to financial instruments like stocks, forex, and commodities. Let’s…
How have stocks, bonds, and gold performed after options expiration week in August? Let’s backtest and find out: Trading Rules [am4show have=’p2;p3;p58;p59;p130;p138;’ user_error=’Premium Post Access’ guest_error=’Premium Posts’] Trading rules: [/am4show] First, let’s backtest the performance of stocks (S&P 500) since 1985. We chose 1985 because it was around this time that derivatives started attracting interest…
Meb Faber’s Tactical Asset Allocation strategy is an active trend-following strategy that uses market timings and allocates assets across four asset classes: stocks, bonds, REITs, and commodities. These four asset classes are divided into five categories: U.S. stocks, foreign stocks, U.S. bonds, U.S. REITs, and World Commodities. Using this strategy, you do not need to…
You might have saved up some money and decided to invest. You already know what you want to invest in, but now you have another decision: When should you invest? If you research the subject, you will likely come across two main strategies: one-time investment and dollar cost averaging. But what are these approaches, and…
The Relative Strength Index (RSI) is among the common and most powerful technical indicators widely used by professional traders and investors when analyzing financial markets. This index has been used by traders to make crucial decisions since it was initiated by J. Welles Wilder in 1978. When trading CFDs, the RSI indicator can be very…
In the financial markets, price action refers to the movement of a security’s price over time, which is depicted in the price chart and forms the basis of technical analysis. Thus, price action trading strategies are a method of trading where traders make decisions about trades based on patterns of price movements rather than on…
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 IBS is above 0.85; and The close is below the 200-day moving average. The trading edge behaves slightly differently depending on the close in relation to…
Intraday trading is one of the most exciting but, at the same time, the most demanding form of online stock trading, and the OHL trading strategy helps you focus on the most important aspects of the trading day. As a day trader, you want to focus on where big money is made in the markets…
The options expiration week effect is well known but very little research can be found online about the specific options expiration day. Let’s dig a little deeper and find out some specifics (and profitable) about this day. Has the option expiration day been good or bad for stocks? What is the options expiration day? US…
Instrument/asset Gold Miners (GDX) Trading rules The trading rules of the edge read like this (please also backtest yourself – you might find a way to improve it): But at the close of OPEX day (option expirations) in December. Results Below is the table if we hold for N days: A pretty strong edge! If…
