When people talk about backtesting their minds often turn to formulas and equity curves. Some may even be drawn to data mining or curve fitting, things that can go wrong. But backtesting is not just a way to test the profitability of a trading signal. In fact, backtesting has taught me many important lessons about […]
Should You Invest In Dividend Aristocrats?
Dividend Aristocrats are stocks from the S&P 500 that have managed to increase their dividends for 25 consecutive years or more. They are typically large, blue-chip companies with a market cap of at least $3 billion. One example of a Dividend Aristocrat is Johnson & Johnson (JNJ) which has 57 years of consecutive dividend increases. […]
The Problem With PE Ratios
One of the biggest mistakes I see new investors make is their use of the PE ratio. The ubiquitous P/E ratio is typically the first metric investors learn on their journey towards financial freedom. But the P/E ratio has some significant drawbacks that you should be aware of. 1. Price is not a good measure […]
Q1 Portfolio Update For ZTM
In February of last year I started a project called Zero To One Million. The goal was to show that anyone can go from zero to one million dollars by investing a regular amount into one or two quality stocks each month. It was also to prove that stock picking is possible and you don’t […]
Testing Turnaround Tuesday
After a big move on a Monday you will often hear traders talk about turnaround Tuesday. The concept is very simple. When markets start the week in a big way, they will often settle down on Tuesday and put in a decent reversal. Looking at the data, we find that there is a small edge […]
Will The S&P 500 Retest Its Low?
March 2020 saw one of the quickest bear markets in history as coronavirus shook the world and the S&P 500 dropped 34% in about five weeks. Since then, the market has reversed and rallied about 24% from its low meaning it’s now down only 19% from the February peak. The market is now trading at […]
When To Buy The Coronavirus Sell-Off
The fallout from the coronavirus has been rapid. The last few weeks have seen huge levels of volatility and the S&P 500 has dropped around 29% from it’s February peak. If you have read any of my previous updates you will know that I have been waiting for an opportunity like this for some time. […]
Performance Of Our Trading Systems In 2019
One of the main reasons why I started Marwood Research is so I have a place to store all of my trading systems. Uploading them online means I can now look back and see how they have performed since they were published. Being able to evaluate the systems on new, unseen data is really important […]
January 2020 Review
Regular readers know that I started a project last year called Zero To A Million. The goal of this project is to prove that anyone can become a millionaire by investing a small amount into the stock market each month. It’s also to prove that you can invest in individual stocks and you don’t have to […]
10 Trading Strategies For A Bear Market
Interest rates are low, taxes are low and the stock market is firing on all cylinders. The current bull market is already the longest in history and just a few percent away from being the largest in history. But bull markets cannot last forever. Some time in the not too distant future a bear market […]
Five Lessons For Investors In 2020
It has been already been an interesting start to 2020 with the flaring up of hostilities in Iran. I never imagined the S&P 500 could hold up so well with this kind of news but it just goes to show how strong this bull market is (and also how complacent investors are becoming). As we […]
December Review – Starbucks And Chewy
Regular readers will know that I started a new project last year called Zero To A Million. The goal of this project is to prove that anyone can become a millionaire by investing a small amount into the stock market each month. It’s also to prove that there are viable alternatives to index funds and […]
Try This Profitable Trade Setup
In this article we will look at a simple trade setup that has been backtested on US stocks and shown to be profitable over nearly 20 years of historical data. We will then consider the benefits and risks of this setup and whether it might be possible to improve the setup with additional analysis. An […]
November Review – Disney And Alibaba Top Up
If you have read some of my recent posts you will know that I’ve started a new portfolio called Zero To A Million. This is a project where I am attempting to reach $1 million in equity by investing a small amount into the stock market each month. This strategy is part quant, part discretionary […]
What Are The Best Performing Stocks Of The Last 20 Years?
20 years ago we were in the middle of the dotcom bubble. This was not a great time to invest since many stocks were at their peak earnings. Many never recovered and a few went bankrupt. However, some companies grew out of the rubble and posted mouth-watering returns. I decided to look at which stocks […]
