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. Read more »
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. Read more »
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. Read more »
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 idea behind dollar cost averaging is simple. Every month invest a set amount of money into the stock market. When the market is high, you’ll be able to afford fewer shares and when it’s low you’ll be able to buy more shares at a lower price.
Over time, the stock market moves up, your average entry price stays relatively low, and you begin to accumulate a substantial portfolio. 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 »
The Hikkake pattern is a simple price action or candlestick pattern that is used to find market turning points.
The pattern is essentially an inside day with a fake breakout and is originally credited to Daniel Chesler CMT. Read more »
This post contains a detailed guide for creating a mean reversion trading strategy.
You will learn what mean reversion is, how to trade it, 10 steps for building a system and a complete example of a mean reversion system.
Let’s get going!
Read more »
Amibroker is an excellent tool for back testing and can also be set up for automated trading with Interactive Brokers.
The basic infrastructure is to connect Amibroker to the Interactive Brokers Trader Workstation software using the Amibroker IBController plugin as a buffer. Read more »
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 »