You’re probably aware of how difficult financial trading can be and how much luck plays a role in results. Latest figures from Finance Magnates show that in the year up to August 2017, 76% of CFD traders lost money. As shown by the graphic below, some brokers were better than others: But it gets worse. […]
If you want to backtest trading strategies it’s important to have good quality data. I use Norgate Data for my end of day price quotes and am very happy with the quality and service. However, there are times when I want to scrape stock data from the web. For example, if I want to extract […]
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.
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 […]
Profitable stock market strategies are not easy to come by. One proven path is to seek out stock market anomalies. A stock market anomaly is a rate of return or investment strategy that seems to defy the efficient market hypothesis. Today, most investors agree that markets are fairly efficient even if they don’t believe in […]
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.
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.
Filling the gap is a popular strategy where you buy a stock when it gaps down in the morning and then wait for it to fill the gap. Many bloggers have written about how good this strategy is. However, there usually isn’t much evidence to support those claims. I test the strategy on 20 Nasdaq […]
Some intraday stock traders say that if they could choose only one technical indicator it would be the VWAP. I find that VWAP is not necessarily a holy grail and traders disagree with the best way to use it. In the rest of this article, I test two very simple VWAP trading systems and present […]
Last week the guys at Quantifiable Edges presented an interesting trading edge which buys one day pullbacks in the S&P 500 during strong up trends. The exact rules are described as follows: