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 […]
This post is a round up of trades and thoughts taken for the week ending on 2nd November 2018. Monday. Have got a position in NTWK that went up nicely today and on solid volume. I have had this trade on for a few days now and will continue to hold it on this kind […]
For systematic traders, your choice of data source is important. There is no shortage of options ranging from free end of day data to subscription only real time feeds. System timeframes, markets and budget all play an important role in choosing providers. In this post we are going to take a look at a relatively […]
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. […]
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 […]
In this post I will be sharing 10 tips that can help you to build better trading strategies and become a better systematic trader. These tips contain little things that are often overlooked or ignored. They’ve helped me and many of the traders I’ve worked with.
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 […]
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.
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.
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.