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 »
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 »
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 »
Whatever your opinions are about the concept of back-testing, there are few better ways to build a trading system than through the back-testing of historical data.
Back-testing allows us to answer critical questions like ‘how many positions should I hold in a portfolio?’, ‘how much risk should I take?’ or ‘how effective was this strategy in the past?’ Read more »
All system developers and traders should keep a notepad on their desk so that they can write down their ideas and keep a record of any back-testing that they do. I don’t know what it is, but there is something about writing down on pad and paper that engages the mind far more so than inputting into a spreadsheet. Read more »
Trading systems are not only good for making money in financial markets but they are also extremely useful for learning. Unfortunately, trading systems often get discarded early on after a couple of poor back-test results.
Sometimes it is better to improve an existing model that needs work than to start afresh with a totally new system. In this article I look at 21 ways you might be able to improve on your existing trading system: Read more »
My goal is to bring new trading strategies to the table every month. Last month, I brought you details about building a trading robot with Excel and Interactive Brokers and this month I’m back with another excellent strategy from Peter Titus called The Big Volatility Short.
Read more »
In this article I present a simple and quick trading strategy for shorting leveraged ETFs.
Using historical data from Norgate and the back-testing program from Amibroker I reveal a potentially profitable strategy that could benefit from further development. Read more »