This month, another new trading strategy called Nuggets Of Gold has been included in our research program Marwood Research. This is a daily, long/short strategy composed of simple rules that is designed to find short-term swing trades.
There is substantial evidence that high volatility stocks earn abnormally low returns while low volatility stocks are lower risk and thus a better choice for investors. In this article, I take a look at the facts and present a number of strategies. The best of which is to buy low volatility stocks in low volatility […]
I recently stumbled across an interesting article on the website medium.com which showed some incredible backtest results for a parabolic stock trading system. The strategy attempts to find explosive, profitable stock trades and was shown to produce a 397.55% net return between 1st January and 12th November 2017.
Position sizing is an important topic but many investors don’t give it much thought. In this article I will look at a method that uses the RSI indicator to size positions. This means we can buy more when the price is low and buy less when the price is high.
Humans have been trying to time the stock market with fancy indicators since the beginning of time. But do they work? In this article I test five different market timing indicators. They are: Coppock Curve Zweig Breadth Thrust Arms Index (TRIN) McClellan Oscillator No. Of New 52-Week Lows These market indicators are all available with […]
I have recently been looking at some old materials and I came across another interesting work by Larry Connors and Cesar Alvarez regarding Bollinger Bands. Bollinger Bands were developed by John Bollinger and can be used in a number of different ways. In this article, we will use Bollinger Bands to find mean reversion trades.
Japanese candlestick patterns are useful because they allow traders to quickly visualise price action in the market. There are many different patterns and many different opinions on their effectiveness. In this article we will look at a trading system that attempts to dynamically select the best performing candlestick pattern from the previous six months and […]
Financial visualisation website FINVIZ.com is one of my favourite trading tools. I use it every day to keep a tab on markets and look at charts. The stock screener on Finviz is also one of the best I’ve found with more than 60 filters that can be applied to 7000 US stocks. In the rest […]
After a period of some thirty years of increasing bond prices, and with the Federal Reserve committed to a policy of gradually increasing interest rates, the time for long-based trading strategies on US treasuries could well be coming to an end. Many, including former Fed chairman Alan Greenspan, have called the bond market a bubble […]
In this article I will show that there is the possibility of a profitable edge when trading breakout stocks on high volume days. However, the edge requires an ability to foresee such high volume in advance. This is no easy task but the data suggests it could be an interesting line for future research.