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.
In the provocative book, The Black Swan, Nassim Nicholas Taleb reminds us that it is often easier (and more useful) to try and disprove something than it is to prove something is categorically true. The best way to do this is through experiments.
Several months ago I was thinking about candlestick charts and whether or not these classic patterns had any predictive ability for trading. I had a look around but all I could find were vague speculations and cliches. I couldn’t find any solid evidence of whether they actually worked or not. So… I thought I would casually […]
Last Friday the S&P 500 formed a shooting star candlestick pattern on the daily chart. This is a Japanese candlestick formation that is normally a bearish reversal signal. Sure enough, the S&P 500 moved lower the next day, dropping around 15 points. We saw this happen last September too. But how often does this bearish pattern really […]
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 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.
When it comes to investing in stocks, I like to look at things that others might miss. Things that are not so easily defined or measured, you could say. Many investors, for example, look at the PE ratio of a company or the items on it’s balance sheet. Some investors might look at chart patterns, or […]
In this article I compare the profit potential from short selling stocks and buying stocks. I do this by testing a strategy that trades various stocks at random and then holds them for different periods.
In this article I look at some moving average crossover strategies and I investigate which moving average crossover lengths are the most effective.