Unfortunately trading systems often get discarded early on after a couple of poor back-test results. Sometimes it is better to improve an existing system than to start afresh with something new. In this article I look at 21 ways you might be able to improve on your existing trading system:
In this article I look at the advantages of a barbell trading strategy and then I put the strategy to the test using historical stock data. As you will see there are some pros and cons to using this technique.
Conventional wisdom suggests that a reverse stock split is generally bad for a company’s stock. That’s because reverse splits are usually undertaken when a stock is in danger of being delisted. But is there any actual evidence that reverse stock splits lead to bad investment returns? And if there is, might you be able to make money from shorting reverse […]
Are you a struggling trader? Do you continue to lose money, even in a bull market? If you answered yes to either question, you are not alone. Financial trading is difficult and statistics reveal that at least 90% of traders lose money. The good news is that profitable trading can be attained with hard work and […]
Recently I have been re-reading the book Quantitative Technical Analysis by Dr. Howard Bandy. This is a hefty book filled with quality information and important ideas on the topic of system development.
It is often easier and more useful to try and disprove something than to prove it is categorically true. By running experiments we can learn just as much by understanding what doesn’t work as we can from looking at what does supposedly work. I decided to run some simple tests on historical stock market data […]
To succeed in the financial markets you need to have some kind of system in place. Trading systems protect the trader from his ‘inner chimp‘ – the limbic side of the brain that relies heavily on emotions and gut instinct. The inner chimp is quick to react and respond to incoming dangers. It often makes snap […]
How much money would you have made if you’d invested $500 a month into Apple stock over the last 15 years? What about other major US companies like General Electric, JP Morgan or Visa? Is this even a good investment strategy? In this article, I find out.
In this post I take a look at one of the greatest traders of all time, Jesse Livermore. Jesse was famously profiled in the classic investing tome Reminiscences of a Stock Operator, a book that has been called the best trading book every written. This is a long piece, clocking in at around 9,000 words and it covers […]
In this post I test nine different moving averages in order to see which is the best moving average for trading. Two different strategies and markets are tested. The results may surprise you.