I recently stumbled across an interesting article on the website medium.com which showed some incredible backtest results for a parabolic stock trading system.
The strategy attempts to find explosive, profitable stock trades and was shown to produce a 397.55% net return between 1st January and 12th November 2017.
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We have a number of trading strategies available on Marwood Research and we have been tracking their performance throughout the year.
Following you will find year-to-date performance of a selection of our trading strategies. Please note that these are all end-of-day, low maintenance strategies. They require very little work and investment of time and can be used as part of a diversified portfolio. Read more »
A reader asked what my thoughts were on bitcoin and what kind of strategies I would recommend to trade this type of market.
I don’t want to get dragged into an opinion piece but I will say that there seem to be an incredible number of amateurs involved in bitcoin which could end badly. Read more »
I’ve been doing some work on volatility products and I’m particularly interested in finding long volatility strategies.
Unfortunately, there are several reasons why betting on volatility going up is difficult:
- Stock markets tend to go up and volatility tends to drop.
- Volatility products that track the VIX suffer from time decay.
- Macroeconomic factors and central banks work to reduce volatility.
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Position sizing is an important topic but many investors don’t give it much thought.
In this article I will look at a method that uses the RSI indicator to size positions. This means we can buy more when the price is low and buy less when the price is high. Read more »
Humans have been trying to time the stock market with fancy indicators since the beginning of time. But do they work? In this article I test five different market timing indicators. They are:
- Coppock Curve
- Zweig Breadth Thrust
- Arms Index (TRIN)
- McClellan Oscillator
- No. Of New 52-Week Lows
These market indicators are all available with my historical database from Norgate Data. Read more »
I have recently been looking at some old materials and I came across another interesting work by Larry Connors and Cesar Alvarez regarding Bollinger Bands.
Bollinger Bands were developed by John Bollinger and can be used in a number of different ways. In this article, we will use Bollinger Bands to find mean reversion trades.
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I try to keep Marwood Research topped up with new trading strategies every month. This month, another interesting investment strategy has been added to our program called Mid Cap Winners.
Mid Cap Winners is a medium term investing system designed for the mid cap space with an average holding period of around 60 days. Read more »
Japanese candlestick patterns are useful because they allow traders to quickly visualise price action in the market. There are many different patterns and many different opinions on their effectiveness.
In this article we will look at a trading system that attempts to dynamically select the best performing candlestick pattern from the previous six months and trade that pattern for the next month. Amibroker formula will also be provided. Read more »
Financial visualisation website FINVIZ.com is one of my favourite trading tools. I use it every day to keep a tab on markets and look at charts.
The stock screener on Finviz is also one of the best I’ve found with more than 60 filters that can be applied to 7000 US stocks.
In the rest of this article, I will take a simple stock screen from Finviz and backtest it on historical data using the backtesting platform Amibroker. This will give us an idea of what to expect if we were to pick stocks according to the screen. Read more »