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 […]
Trend Following
Using Simple Trend Following Strategies To Profit From Bitcoin
A reader asked what my thoughts were on bitcoin and what kind of strategies I would recommend to trade this type of market. I don’t want to get dragged into an opinion piece but I will say that there seem to be an incredible number of amateurs involved in bitcoin which could end badly.
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.
Trend Following System Update – 08.20.15
2015 has not been an ideal year for stock traders so far. As you know, we have seen plenty of volatility in China, Europe and Emerging Markets. The S&P 500 has been trading in a choppy range for much of the year and is currently showing a year-to-date return of only 1.57%. Our trend following system […]
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.
Testing Different Trend Following Stops
A number of students on my trend following course have mentioned a couple of different trailing stop ideas, so I thought I would put them to the test and see how they perform. Following is an exploration into two different methods; an idea from Nick Radge and a chandelier stop from Charles Le Beau.
