The benefits of having a profitable trading system are clear. Wealth generation, freedom, reduced stress. But there are problems too, which most system developers sweep under the carpet. In this post we will look at some of the disadvantages associated with trading systems.
It has now been 16 years since the horrific attacks on the twin towers. A day which changed the world and had a profound impact on millions of people. I remember very clearly what I was doing that day and I’m sure that you do too. It was a day that I will never forget.¹
I try to keep Marwood Research topped up with new trading strategies every month. This month, another interesting investment strategy has been added to our program called Mid Cap Winners. Mid Cap Winners is a medium term investing system designed for the mid cap space with an average holding period of around 60 days.
Financial visualisation website FINVIZ.com is one of my favourite trading tools. I use it every day to keep a tab on markets and look at charts. The stock screener on Finviz is also one of the best I’ve found with more than 60 filters that can be applied to 7000 US stocks. In the rest […]
After a period of some thirty years of increasing bond prices, and with the Federal Reserve committed to a policy of gradually increasing interest rates, the time for long-based trading strategies on US treasuries could well be coming to an end. Many, including former Fed chairman Alan Greenspan, have called the bond market a bubble […]
Longer term readers and members will know that I try to keep Marwood Research updated with new trading strategies and information on a monthly basis. This month we have added a brand new trading strategy to the program called Trading For Yield.
In this article I will show that there is the possibility of a profitable edge when trading breakout stocks on high volume days. However, the edge requires an ability to foresee such high volume in advance. This is no easy task but the data suggests it could be an interesting line for future research.
The concept of trend following is based on the belief that security prices move in upwards or downward trends over time and that the surest way to profit from those moves is to attempt to ride those trends. Despite some claims that trend following is a strategy for nonconformists, trend following is in fact hugely popular, particularly among […]
The new course Hedge Fund Trading Systems Part Two is now open for enrolment. This course contains five new trading systems that I have developed. Each system has been run on robust historical data and shows a consistent, profitable edge in back-testing. The rules for each system are fully explained and the Amibroker source code […]
Whatever your opinions are about the concept of back-testing, there are few better ways to build a trading system than through the back-testing of historical data. Back-testing allows us to answer critical questions like ‘how many positions should I hold in a portfolio?’, ‘how much risk should I take?’ or ‘how effective was this strategy in the past?’