S&P 500 (SPY)
The trading rules of the edge read like this (please also backtest yourself – you might find a way to improve it):
The trading edge behaves slightly differently depending on the close in relation to the 200-day moving average.
Trading performance if exit after N-days (100 000 and compounding):
There is a pretty negative edge in the near term.
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 70; and Today is Monday; and the close is below the 200-day moving average. Results Trading performance if exit after N-days (100 000 and…
In a previous article, we presented an S&P 500 and gold rotation strategy. Today we test a sector rotation strategy between S&P 500 and gold miners. Let’s call the strategy an S&P 500 and gold miners rotation strategy. The logic behind the strategy is based on this: The stock market has a strong seasonality from…
Globalization has made it possible for investors to tap into investment opportunities around the world, and as the second largest economy in the world, the Chinese stock market provides opportunities. But what is your China trading strategy? You can also trade Chinese stocks listed on Chinese exchanges, especially the Hong Kong Exchange. However, you would…
What are the worst days of the year for trading stocks? Let’s find out and test from the year 2000. We did a backtest where we optimized the month and trading day to find the WORST trading days for the S&P 500 from the year 2000. We remind you that the TRADING day is different…
Understanding volume and price, and how they can influence the market, is very important in trading. Since volume is the measure of activities in the market, traders can use the information provided to increase the probability of their trades. A great indicator that combines price action and volume is the money flow index. Now, what…
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