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 »
Today’s trading edge is to go short GBTC stock (ticker symbol for the GBTC Investment Trust) and go long bitcoin in order to profit from the substantial spread between the two products.
This spread is predicted to close once Bitcoin futures go live on the CBOE and CME futures exchanges in a few days time. Read more »
30-years ago it was considered irresponsible to use a market timing strategy to try and outperform the S&P 500. In recent years as investors have started to gain increased levels of access to historical data and the tools to develop effective trading models, it might now be considered irresponsible to not use a market timing strategy.
At least that’s what famed investor and gambler Blair Hull believes, and his recent study on building a market timing strategy that predicts future returns, proves exactly that. Read more »
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 used as part of a diversified portfolio. Read more »
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. Read more »
Because financial matters are rarely covered during high school, many people don’t understand the stock market or how to invest their money properly.
This means that they are more vulnerable to investment scams. With the growth of the internet, and the current frothy state of global markets, these investment scams are unfortunately all too common.
So here are a list of 20 common traps that all traders and investors need to be aware of:
Read more »
Since starting this blog I’ve been able to document a few of the mistakes that I’ve made over the years trading the financial markets.
There was the time that I lost money buying Alibaba shares even though I pretty much picked the bottom.
Read more »
When times are good the economy is strong and everyone has more money to spend. So is there any relationship between consumer spending and the stock market?
A new research paper suggests there is and provides a novel way of measuring consumer spending on a daily basis. Instead of looking at more traditional measures (such as personal income or consumer sentiment) the paper focuses on box office earnings. Read more »