Hedge fund manager 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 […]
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.
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 […]
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 […]
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).
The 200 day moving average is an extremely popular indicator among traders and trend followers. When a stock is above the 200 day MA, it’s said to be in an uptrend and when it’s below, it’s said to be in a downtrend. In this article I look at a strategy that buys upward trending stocks […]
The stock market cannot go up forever. At some point there will be another stock market crash and as always there will be some winners and some losers. In this article, I look at some techniques investors can use during a market crash and reveal two interesting strategies based on a recent academic paper. Tactics […]
In this article I will show that there is the possibility of a profitable edge when trading breakout stocks on high volume days. However, the edge requires an ability to foresee such high volume in advance. This is no easy task but the data suggests it could be an interesting line for future research.
The new course Hedge Fund Trading Systems Part Two is now open for enrolment. This course contains five new trading systems that I have developed. Each system has been run on robust historical data and shows a consistent, profitable edge in back-testing. The rules for each system are fully explained and the Amibroker source code […]
All system developers and traders should keep a notepad on their desk so that they can write down their ideas and keep a record of any back-testing that they do. I don’t know what it is, but there is something about writing down on pad and paper that engages the mind far more so than […]