The Money Flow Index indicator (MFI) is an oscillator that uses price and volume to measure momentum. It’s also known as a volume-weighted RSI and can be used in a similar way.
In this article I will be testing a strategy that I found on a popular trading website. 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 »
The month of August was characterized by a lack of direction across many of the major stock market indices. Despite any notable trend, several of our premium trading strategies were able to profit and put in a solid month of results. Read more »
The benefits of having a profitable trading system are clear. Wealth generation, freedom, reduced stress. But there are problems too, which most system developers sweep under the carpet.
In this post we will look at some of the disadvantages associated with trading systems. Read more »
It has now been 16 years since the horrific attacks on the twin towers. A day which changed the world and had a profound impact on millions of people.
I remember very clearly what I was doing that day and I’m sure that you do too. It was a day that I will never forget.¹ Read more »
It’s a fair assumption that managers will have a better insight into the financial state of the company they’re running than outside investors. A manager will act and make decisions that are based around what they perceive the outlook for that company to be.
It’s also assumed that when a company makes a corporate action, such as a share buyback, a merger, a dividend or an equity issue, as soon as it’s announced, the market factors that into the price to reflect the potential long term impact of the decision. 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 »
The focus of this article is a new study by Caporale and Plastun. They suggest that there’s an edge to be had in forex markets by trading gaps. However, they could not find an edge in other assets.
Following are some of the findings from the research paper and then some concerns we have about their results: Read more »