Ray Dalio says that every time he learns something new or makes a mistake in the markets he writes it down so that he can go over it later and learn from it.
I’ve been doing something similar and it does help keep a record of things. Here’s a list of the most important trading lessons that I have learnt over the years. 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 »
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 »
Debate has raged for years as to whether or not technical analysis is actually a useful tool in helping to generate long run profits in the markets.
For some, technical analysis is no more than hocus pocus. An approach that is based on faith rather than legitimate science. For others, technical analysis is the foundation of profitable trading and those that dismiss technical analysis are usually not ‘real’ traders. Read more »
The world of social media has evolved rapidly in recent years. Traders and investors widely use various platforms both as a means of getting access to news and for trading ideas.
Using social media as a trading indicator isn’t a new concept and the sentiment of tweets from Twitter has previously been shown to lead to outperformance in various different studies. Read more »
Global stock markets started the month of July on the back foot following a Federal Reserve rate increase in June and some mixed economic signals.
However, by the end of the month equity markets were back to their all-time highs and the bull market in US equities continued. This came as US growth figures showed improvement and non-farm payrolls came in better than expected. 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 »
Sluggish growth and anaemic inflation has seen global commodity prices fall steadily in value since 2008. Because of this, and with stock markets reaching new record highs in 2017, commodity trading has gone out of fashion.
Yet in the past, commodities have provided a good source of returns for both investors and active traders. Furthermore, there is evidence to suggest that commodities can provide less volatile returns than some stocks. Read more »
After a period of some thirty years of increasing bond prices, and with the Federal Reserve committed to a policy of gradually increasing interest rates, the time for long-based trading strategies on US treasuries could well be coming to an end.
Many, including former Fed chairman Alan Greenspan, have called the bond market a bubble ready to pop. With this in mind, this article presents a simple trading strategy that shorts the US ten year note using the ATR (average true range) indicator.
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Longer term readers and members will know that I try to keep Marwood Research updated with new trading strategies and information on a monthly basis.
This month we have added a brand new trading strategy to the program called Trading For Yield. Read more »
In this article I look at some interesting new research from Haoyu Xu that can be useful for both momentum investors and reversal traders.
The research finds that morning returns positively predict next month returns (momentum) while afternoon returns negatively predict next month returns (reversals). Read more »
Blair Hull is a legend of Wall Street and a former professional blackjack player. He was named by Worth magazine as one of Wall Street’s 25 smartest players and by Forbes magazine as one of the most successful traders of the last 40 years.
Today, Hull operates a number of ventures including an ETF that attempts to time the S&P 500 through a mix of 12 technical and fundamental indicators. In this article, we will look at the idea behind Blair Hull’s strategy and the 12 indicators he uses. Read more »