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. Read more »
The uptick rule is a short selling restriction that says you can only short sell a stock on an uptick. In other words, you must wait for a stock to trade a tick higher before you can short it.
This rule was first introduced in 1938 to promote market stability and investor confidence. However, the rule has always had critics and was pulled shortly before the financial crisis in 2007. Read more »
A stock market anomaly is a way to beat the market.
It’s a rate of return or investment strategy that seems to defy the efficient market hypothesis.
Today, most investors agree that markets are fairly efficient even if they don’t believe in the purest form of market efficiency.
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Members of our research program at Marwood Research will know that I update the program with new trading strategies on a regular basis.
Last month was Vix Trio and this month I have included another new trading system (with source code) called VWAP Pilot. Read more »
Filling the gap is a popular strategy where you buy a stock when it gaps down in the morning and then wait for it to fill the gap.
Many bloggers have written about how good this strategy is. However, there usually isn’t much evidence to support those claims.
I test the strategy on 20 Nasdaq stocks between 2008-2018 and find mixed results after transaction costs. Read more »
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: Read more »
Back in January 2017, Donald Trump had just become President and most pundits were forecasting a year of stock market volatility and interest rate hikes.
As it turned out (despite terrorist attacks, natural disasters and provocative tweets) 2017 finished as one of the least volatile years in history. Read more »
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 environments. Read more »
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.
Read more »
At the time of writing, bitcoin prices were touching $15,000 having previously hit a high of $17,000 intraday. The cryptocurrency is seemingly unstoppable at this point and could well be the biggest bubble of our lifetime.
The latest price increase is wild and comes as the CME and CBOE prepare to launch bitcoin futures next week. This development is likely to bring a new dimension to the bitcoin market and no-one knows how it will pan out. Read more »