I’m always on the lookout for interesting ways to time the market. Using a market timing model can help to avoid painful bear markets and indicate when is a good time to buy stocks. Recently, I was looking at some of the strategies on Allocate Smartly and came across one called Growth Trend Timing. Growth […]
Stocks
4 Momentum Strategies Put To The Test
Momentum investing is a successful method practiced by many investors around the world. In the past, authors have mainly focused on price momentum with a lookback period of around 12 months. More recently, authors have been including fundamental factors into their analysis. Factors such as earnings, revenue and profit margins. For example, this paper called […]
3 Simple Things To Improve Your Trading
The best traders follow consistent strategies. Many use the same signals repeatedly to show them when to enter and exit a trade. In other words, they place orders on a trading system that they have developed through trial-and-error. In my experience, this is true for all traders. Many old school traders are not even aware […]
Is This The Greatest Bubble Of All Time?
There’s been a lot of talk lately as to whether the stock market in 2021 is in a bubble. If you look at Google Trends data you can see that search traffic for the term ‘stock market bubble’ hit an all-time high in January of this year: Search data may have deflated since that January […]
How To Trade A Price Rejection Trading Strategy
A price rejection trading strategy aims to identify levels at which a price trend – either upward or downwards – will reverse as a result of the market’s reluctance to move above or below that level. Price rejection strategies work for both long and short positions depending on the previous directional pattern. For uptrends, a […]
Which Trailing Stop Is The Best?
A trailing stop is a stop loss order that moves with the stock price. As the stock price rises, the stop moves higher too, locking in profit and reducing the risk of a loss. For example, suppose you buy Apple at $100 and enter a $20 trailing stop. When Apple moves to $120, your stop […]
Semrush Looks Like A Winner
Semrush (SEMR) is a SaaS business directed at online marketers which IPO’d on March 25th 2021. The company boasts annual recurring revenues of $144 million with 76% gross margins and a 50% revenue growth rate measured between December 2016 to December 2020. The Semrush IPO was not particularly well received as underwriters hoped for a […]
Do Growth Stocks Make More Money?
I came across the following statement on social media that is attributed to the British economist John Kay: It’s a myth that profits are higher in fast growing industries. – John Kay This is quite an interesting comment. The past decade or so has seen a shift from value stocks into growth. I would argue […]
Genius Sports Looks Like A Good Bet (DMYD Stock)
Ever since I started this website I’ve been focused on systematic trading. I’ve talked about how to build and backtest quantitative trading strategies and its advantages. I’ve also said that I like to combine quantitative analysis with fundamentals and I have had some success doing so. Going forward, I’d love to do more deeper research […]
Sentiment Analysis For Trading – Does It Work?
The last few months we have seen a surge in traders looking at forums such as Wall Street Bets trying to identify meme stocks and the next GameStop. This type of trading could be classed as sentiment analysis trading. Investors attempt to make money in stocks by assessing what other investors are talking about. Sentiment […]
Analysis Of Entry Signals
I have just published a new class called Analysis Of Entry Signals. This is a 1-hour class where I take 40 different trading signals and analyse their profit potential on US stocks over different time horizons, spanning 2-days to two years. The idea behind this class is to analyse a large amount of historical data […]
How To Invest With Intelligent Machines – Lessons From Garry Kasparov
I’ve been reading the book Deep Thinking by Garry Kasparov. Kasparov is one of the greatest chess players of all time. He ranked number one from 1984 until his retirement in 2005, obtaining a peak rating of 2851. Kasparov is also remembered as the first world champion to lose a match against a computer, IBM’s […]
Trend Following With ETFs and Large Cap Stocks
I was browsing Quantpedia and came across an investment strategy called Asset Class Trend Following, originally credited to Meb Faber. The strategy is very simple so I decided to run a couple of quick backtests and see if I could find anything interesting. Asset Class Trend Following Rules The rules are straightforward… “Using an investment […]
Should You Trade This Earnings Pullback Strategy?
I’ve written a few articles lately that look at the use of valuation metrics on investing strategies. Those articles prompted a reader to ask if I could test a strategy called the EV/EBITDA pullback. The idea behind this strategy is to buy a stock when the EV/EBITDA ratio deviates 30% or more below the historical […]
Simple Algo Trading With Alpaca And Streak
Technology is moving fast and there are a number of interesting fintech startups cropping up in recent years. One promising development is Alpaca which was started in 2015 and billed as the first commission-free API stock brokerage. The interesting thing with Alpaca is that it connects with a host of apps and services that makes […]
Is Value Investing Dead? Warren Buffett Doesn’t Think So
I don’t know about you but I keep hearing the same story across financial media. Apparently, value investing is no longer relevant. Both the Economist and Washington Post had articles out this week proclaiming that value investing was on its last legs. So is value investing dead or is it simply in hibernation? To the […]
