This week we have seen a mini crash in the stock market indexes and an implosion of several short volatility ETNs. Mood in the stock market has quickly turned from exuberance to fear while some investors are ready to ‘buy the dip’. Conventional wisdom suggests that the best time to buy stocks is when there is […]
Last week the guys at Quantifiable Edges presented an interesting trading edge which buys one day pullbacks in the S&P 500 during strong up trends. The exact rules are described as follows:
This month, another new trading strategy called Nuggets Of Gold has been included in our research program Marwood Research. This is a daily, long/short strategy composed of simple rules that is designed to find short-term swing trades.
There is substantial evidence that high volatility stocks earn abnormally low returns while low volatility stocks are lower risk and thus a better choice for investors. In this article, I take a look at the facts and present a number of strategies. The best of which is to buy low volatility stocks in low volatility […]
I recently stumbled across an interesting article on the website medium.com which showed some incredible backtest results for a parabolic stock trading system. The strategy attempts to find explosive, profitable stock trades and was shown to produce a 397.55% net return between 1st January and 12th November 2017.
We have a number of trading strategies available on Marwood Research and we have been tracking their performance throughout the year. Following you will find year-to-date performance of a selection of our trading strategies. Please note that these are all end-of-day, low maintenance strategies. They require very little work and investment of time and can be […]
A reader asked what my thoughts were on bitcoin and what kind of strategies I would recommend to trade this type of market. I don’t want to get dragged into an opinion piece but I will say that there seem to be an incredible number of amateurs involved in bitcoin which could end badly.
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 […]
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.
Humans have been trying to time the stock market with fancy indicators since the beginning of time. But do they work? In this article I test five different market timing indicators. They are: Coppock Curve Zweig Breadth Thrust Arms Index (TRIN) McClellan Oscillator No. Of New 52-Week Lows These market indicators are all available with […]