The double top pattern is a chart formation consisting of two consecutive price peaks that leads to a bearish reversal. For years, traders have claimed that the double top is a high probability short setup. This is because a double top pattern signifies that bulls are having trouble pushing the price past the prior high. […]
Amibroker
How To 10x Your Momentum Returns
The backbone of personal finance is to save more than you spend and invest the proceeds. The most common advice is to put your money into cheap index funds each month with a simple allocation split. But what if you want to try something more adventurous? Index investing may only provide returns of six or […]
RSI Or MFI – Which One Works Best?
RSI is one of the most popular technical indicators among quant traders, particularly the 2-period and 4-period RSI. Previous analysis and articles have shown how RSI(2) maintained a strong edge in stocks through most of the 2000s. The MFI indicator (money flow index) is similar to RSI but incorporates volume as well. MFI is not […]
Simple Volatility Strategy For VXX
I’ve spent the weekend looking into volatility and I stumbled upon a simple but effective volatility strategy. The idea is to go long the VXX ETF when volatility is rising and go short the ETF when volatility is falling. This is the opposite to the usual approach which is to short volatility on sharp rallies. […]
Market Meanness Index For Amibroker
The Market Meanness Index is a technical indicator developed by JCL from the Financial Hacker website. In this article we will describe what the indicator is designed to do and provide some code for Amibroker users. MMI is a statistical algorithm based on the median value of a price series. It’s purpose is to help […]
How To Invest In The Strongest Stocks Every Month
If you want to retire wealthy but you don’t have a lot of money there is a simple strategy you can use called Dollar Cost Averaging. The idea is to save some of your income and put it into the stock market at regular intervals (usually monthly). Dollar cost averaging typically involves regular investing in […]
Using This Sector Filter Improves Net Profit By 50%
Old school trading wisdom says you should not only buy the strongest stocks but the strongest stocks in the strongest sectors. In this article, I discuss a simple breakout system. Then I introduce a basic sector filter which improves our net profit by around 50%. Full Amibroker code is also provided.
Three Trading Strategies Put To The Test
If you want to put your money in the stock market it makes sense to first analyse the data to see whether your trading strategy is a good one or not. In this article I take a look at three technical trading strategies and see how successful they’ve been over the past 10-18 years.
A Simple Pullback Strategy – Full Test Results And Rules
Every major trend in history has begun with a breakout. However, breakouts also lead to whipsaw trades so it’s sometimes better to join a trend on a subsequent pullback. In the rest of this article I will demonstrate a very simple strategy that does just that.
Data Mining For Profits With Amibroker And Bonds
In today’s blog post I take a data mining approach to find a potentially profitable trading strategy based on the movement of US treasury rates. The idea of this strategy is to find a selection of stocks that respond favourably to a downward price movement in US Treasury yields.
