Conventional wisdom suggests that a reverse stock split is generally bad for a company’s stock. That’s because reverse splits are usually undertaken when a stock is in danger of being delisted. But is there any actual evidence that reverse stock splits lead to bad investment returns? And if there is, might you be able to make money from shorting reverse […]
Recently I have been re-reading the book Quantitative Technical Analysis by Dr. Howard Bandy. This is a hefty book filled with quality information and important ideas on the topic of system development.
There are more ways than one to exit a trade in Amibroker. It may sound obvious but trading strategies can benefit from being creative with exits as well as entries. In this post, I look at a simple way to come up with more flexible sell signals.
Several months ago I was thinking about candlestick charts and whether or not these classic patterns had any predictive ability for trading. I had a look around but all I could find were vague speculations and cliches. I couldn’t find any solid evidence of whether they actually worked or not. So… I thought I would casually […]
Download the rules to a trading system that makes 170% a year in stocks. Regular readers of this blog will be aware that I like to create trading systems using Amibroker; a program which allows you to test various investment strategies on historical stock data.
In a recent article we looked at the shooting star candlestick pattern and we found that it wasn’t a particularly successful signal for spotting reversals. In this article we will look at another bearish reversal signal in the form of the gravestone doji candlestick pattern. What is a Gravestone Doji? A doji is a Japanese candlestick […]
Last Friday the S&P 500 formed a shooting star candlestick pattern on the daily chart. This is a Japanese candlestick formation that is normally a bearish reversal signal. Sure enough, the S&P 500 moved lower the next day, dropping around 15 points. We saw this happen last September too. But how often does this bearish […]
One of the most powerful functions in Amibroker is the ability to easily program rotational trading strategies. In this article I present 8 ideas that may inspire you to create a new rotational trading system.
In this article I look at a popular method for trading stocks and futures which utilises the RSI 2 indicator. This is a mean reversion technique for finding overbought and oversold securities.
In this article I test another simple trading idea that is designed to find high probability stock moves.
I mentioned in a recent article that one of the things I like best about Amibroker is the ability to import data sets from various sources and use it to create indicators. In this post, I show how to import TED spread data and import it into Amibroker. I then build a simple economic indicator that uses the […]
In this article, I look at a simple way to add ETFs to your trading system so you can hedge a portfolio without having to use the custom back-test interface.
In this article I look at some moving average crossover strategies and I investigate which moving average crossover lengths are the most effective.
In the 2011 academic paper “Another look at trading costs and short-term reversal profits“, the authors (De Groot et al) speculate that a simple mean reversion strategy in US stocks is able to significantly outperform the market. The strategy seems to have promise, especially when used in a rotational setting with smart allocation.
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.
I have spoken before that I am a fan of the Dollar Cost Averaging (DCA) method for investing in stocks. Particularly as a way to invest a regular stream of income. In this article I present a new take on the traditional DCA approach and suggest a way investors can further improve their returns. I […]