Trading Edge #50

Want to know about the VIX futures trading strategy? Introduced in 2004, VIX futures offers market participants the ability to trade a liquid volatility product based on the VIX Index — an index that measures implied volatility in the U.S. equity market. VIX is one of the most common barometers of market sentiment. For speculative…

In previous articles, we highlighted that simple adaptations to a strategy can have a huge impact on the performance of the strategy, its expected rate of return, and risk profile. We’ve seen that entering and exiting the trade on the same day’s close rather than the next day’s open can boost the strategy’s performance while…

Gap trading strategies have been a popular tool for many decades. Gaps vary in size, variations, and volume depending on the asset you are looking at. Gaps can be traded in any instrument, and certain asset classes have substantial daily gaps. This article looks at gap trading strategies in the stock market. We provide you…

One of the best edges in the stock market is the overnight edge – the price action from the close until tomorrow’s morning (or close). Is it still working? Can a trend filter improve performance? Empirical evidence – the overnight edge: The overnight edge is best illustrated by a simple backtest and a chart. This…