Last week I received an email courtesy of the StockTwits newsletter with the headline ‘This Market Is Confusing Everyone’.
Apparently, because the market has fallen, gone up, and then fallen again (in the space of a few days) investors are totally confused and the market is ‘faking out everyone’. Read more »
The stock market cannot go up forever. At some point there will be another stock market crash and as always there will be some winners and some losers.
In this article, I look at some techniques investors can use during a market crash and reveal two interesting strategies based on a recent academic paper. Read more »
I have just included a new trading system called ETF Pullbacks for the course Hedge Fund Trading Systems Part Two.
This is a very simple mean reversion system with a high win rate of over 70% and an average trade duration of 7 days. Read more »
In this article I will show that there is the possibility of a profitable edge when trading breakout stocks on high volume days.
However, the edge requires an ability to foresee such high volume in advance. This is no easy task but the data suggests it could be an interesting line for future research. Read more »
Warren Buffett is an example of someone who recognises the importance of reading. It’s been said that he spends 80% of his day reading and thinking and can read up to 600 – 1,000 pages a day.
As a system trader it is also important to read and to keep on top of new developments in the industry. However, doing so is difficult because of the vast amount of information that is produced daily. Read more »
In this article I look at some of the ramifications of the upcoming UK election for financial markets. This is likely to be a less volatile event than Brexit.
If the Conservatives don’t get a 50-seat majority, there is downside for the pound. But it would take a shock result to eject GBPUSD from its recent range. Read more »
The concept of trend following is based on the belief that security prices move in upwards or downward trends over time and that the surest way to profit from those moves is to attempt to ride those trends.
Despite some claims that trend following is a strategy for nonconformists, trend following is in fact hugely popular, particularly among retail investors. Read more »
Traders have known for some time now that mainstream media is not a reliable source of information for predicting future price moves in financial markets.
In fact, it is assumed by many investors that once a story is fully reported in the financial press, the vast majority of the corresponding price move has already taken place. Read more »
The new course Hedge Fund Trading Systems Part Two is now open for enrolment. This course contains five new trading systems that I have developed.
Each system has been run on robust historical data and shows a consistent, profitable edge in back-testing. The rules for each system are fully explained and the Amibroker source code is also provided. Read more »
In this article I implement Ray Dalio’s All Weather portfolio using popular ETFs and I back-test the strategy using Amibroker. The results show nice risk-adjusted returns for investors. Read more »