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, […]
Trend Following
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 […]
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 […]
Improving Trend Following With The PE Ratio
In a previous article we looked at the effects of introducing price to earnings data to a mean reversion strategy. Although the effects were quite small, we found that we could improve a simple RSI strategy by avoiding stocks with negative PE ratios. We also found that stocks with PE ratios over 15 produced higher […]
How To Profit From Crypto Trend Following
A reader asked what my thoughts were on bitcoin and other cryptocurrencies. They wanted to know what kind of strategies I would recommend to trade this type of market. The obvious choice has to be trend following. Bitcoin and other cryptocurrencies exhibit strong trending tendencies. They move up and down in stable trends that last […]
5 Mistakes To Avoid When Following The Trend
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 […]
25 Jesse Livermore Trading Rules : Ultimate Guide To The Boy Plunger
In this post I take a look at one of the greatest traders of all time, Jesse Livermore. Jesse was famously profiled in the classic investing tome Reminiscences of a Stock Operator, a book that has been called the best trading book every written. This is a long piece, clocking in at around 9,000 words and it covers […]
Which Is The Best Moving Average? Test Results Reveal The Truth
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.
How to Pyramid Like Jesse Livermore – The Boy Plunger Extraordinaire
In the classic trading book, Reminiscences of a Stock Operator, Jesse Livermore spoke a little bit about a professional gambler called Pat Hearne. Pat would treat the markets like a casino game (such as roulette, faro or blackjack) and his strategy was to make a series of calculated bets, always looking for small, sure wins.
Testing Moving Average Crossover Strategies On Stocks : Which Is Best?
In this article I look at some moving average crossover strategies and I investigate which moving average crossover lengths are the most effective.
Bollinger Bands Trading Strategies Put To The Test
10 More Ways To Follow The Trend
20 Global Supertrends And The Stocks To Buy Now
While trends differ in size, global supertrends can cover several decades and in some cases, span generations. And in this article I will look at 20 possible supertrends and how investors might benefit from them.
Trading Systems That Work: Stress Testing Trading System 20
Recently, a reader questioned the trading systems that are presented in my book and course. I do not actually know whether they bought the book or the course or not but they emailed me to say that none of the trading systems presented work.
This is why forex trading is not easy (simple trading systems debunked)
People often want to know whether forex trading is profitable. They see a strategy online promising 1000% returns and millions of dollars in profits and wonder whether they too can become successful forex traders. On the flip side, though, they will also have heard the stories of those traders who have lost money and in […]
50 Day Moving Average Strategy – Put To The Test On Stocks
In this article I look at a simple 50 day moving average strategy and use the simulator from Amibroker to test the strategy on the stock market. When it comes to technical analysis and trend following there is no shortage of naysayers. Academics like to say that markets are perfectly efficient and that short term […]
