There are a number of different ways to trade cryptocurrencies. You can invest for the long term (aka hodl), you can day trade, or you can build your own quantitative crypto investment strategy. My preference has always been to trade strategies that are backed by data and show a positive edge in historical simulations. However, […]
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Growth Trend Timing With US Stocks
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 […]
How To Build A Trend Following Trading Strategy
What Is Trend Following? If you look at a selection of charts, it becomes obvious that prices tend to move in particular directions – either up or down – for extended periods of time. Often, there’s no obvious reason why this is occurring but it is. These are trends, and successful traders generate significant profits […]
Easy Amibroker Tutorial – Learn Amibroker In Under An Hour
In this article the aim is to learn Amibroker in under a hour. This is not a complete Amibroker tutorial but it covers all the features I find most important for trading. If you want to learn how to use Amibroker then this is for you. If you’ve never head of it, Amibroker is a […]
How To Build A Mean Reversion Trading Strategy Ultimate Guide
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 for US stocks. Introduction To Mean Reversion A mean reversion trading strategy involves betting that prices […]
How Trading Put Me In Hospital
I’ve always liked a bet. After school I would go to the bookmakers to place bets on the football. I used to place accumulators that give you the chance to win big sums. When I was at University I got heavily into poker. Heads-up was my game. It was fast paced and I became quite […]
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 […]
Can You Make Money With Sentiment Analysis?
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 […]
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 […]
Performance Of Our Trading Systems In 2020
It’s that time of year again where we look back and review our trades and trading strategies from the past year. 2020 was without doubt an interesting one. The coronavirus pandemic brought chaos to people all over the world as well as to financial markets. Few could have predicted the sharp twists and turns that […]
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 […]
How To Screen For Stocks With Norgate Data
Long time readers know that I use Norgate Data for most of my backtesting. The data is clean, reliable and links easily with my backtesting software Amibroker. Norgate Data also carries a long list of fundamental data points. The data is not historical but it can be used to set up some very powerful stock screens. […]
What Trading Signals Work Best For Long-Term Investors?
Simple technical analysis is of limited use to long-term investors. Momentum can last for a long time but it doesn’t have much predictive ability on a five or ten year time horizon. Likewise, indicators like moving averages or RSI are best suited for shorter-term trading. With that said, you don’t know until you test. So in […]
How To Trade Oversold Stocks (Waterfall Pattern)
In order to make a profit in stocks you need to sell at a higher price than you purchased. Because of this, many traders look for stocks that have dropped to extremely oversold levels in the hope that they will bounce back from their low levels. One such pattern traders look for is known as […]
