Conventional wisdom suggests that a reverse stock split is generally bad for a company’s stock. That’s because reverse splits are usually undertaken when a stock is in danger of being delisted.
But is there any actual evidence that reverse stock splits lead to bad investment returns? And if there is, might you be able to make money from shorting reverse split stocks? Read more »
It is my belief that to succeed in the financial markets you need to have some kind of trading system in place.
Trading systems protect the trader from his ‘inner chimp‘ – the limbic side of the brain that relies heavily on emotions and gut instinct. The inner chimp is quick to react and respond to incoming dangers. It often makes snap decisions based on emotion or a feeling. Read more »
Download the rules to a trading system that makes 170% a year in stocks.
Regular readers of this blog will be aware that I like to create trading systems using Amibroker; a program which allows you to test various investment strategies on historical stock data. Read more »
One of the most powerful functions in Amibroker is the ability to easily program rotational trading strategies. In this article I present 8 ideas that may inspire you to create a new rotational trading system.
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In this article I look at a popular method for trading stocks and futures which utilises the RSI 2 indicator. This is a mean reversion technique for finding overbought and oversold securities. Read more »
Quantitative trading involves the use of mathematical calculations, data analysis and number crunching to seek out profitable trading opportunities in the financial markets.
Price, volume, and fundamental data can all be used to formulate quantitative trading strategies depending on what it is you are hoping to achieve. In the rest of this article, I will identify 25 places online, where you might find some profitable quant trading strategies and ideas: Read more »
In last week’s post I wrote about a strategy for shorting shares that looked to sell short overbought, ‘supernova-type’ companies. The strategy produced some good results in testing and was also picked up elsewhere in the blogosphere. Read more »
This article contains a quick introduction to shorting shares then presents my favourite strategy for finding shorts. I then put this strategy to the test on historical data before finishing up with some final tips. Read more »
In this article I test another simple trading idea that is designed to find high probability stock moves. Amibroker code is provided at the end of the post.
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2015 has not been an ideal year for stock traders so far. As you know, we have seen plenty of volatility in China, Europe and Emerging Markets. The S&P 500 has been trading in a choppy range for much of the year and is currently showing a year-to-date return of only 1.57%.
Our trend following system is currently ahead of the benchmark index by a healthy margin and this is based on various metrics of performance and risk. Read more »