Members of our research program at Marwood Research will know that I update the program with new trading strategies on a regular basis. Last month was Vix Trio and this month I have included another new trading system (with source code) called VWAP Pilot.
Filling the gap is a popular strategy where you buy a stock when it gaps down in the morning and then wait for it to fill the gap. Many bloggers have written about how good this strategy is. However, there usually isn’t much evidence to support those claims. I test the strategy on 20 Nasdaq […]
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 […]
We have a number of trading strategies available on Marwood Research and we have been tracking their performance throughout the year. Following you will find year-to-date performance of a selection of our trading strategies. Please note that these are all end-of-day, low maintenance strategies. They require very little work and investment of time and can be […]
Since starting this blog I’ve been able to document a few of the mistakes that I’ve made over the years trading the financial markets. There was the time that I lost money buying Alibaba shares even though I pretty much picked the bottom.
The Money Flow Index indicator (MFI) is an oscillator that uses price and volume to measure momentum. It’s also known as a volume-weighted RSI and can be used in a similar way. In this article I will be testing a strategy that I found on a popular trading website.
I’ve been doing some work on volatility products and I’m particularly interested in finding long volatility strategies. Unfortunately, there are several reasons why betting on volatility going up is difficult: Stock markets tend to go up and volatility tends to drop. Volatility products that track the VIX suffer from time decay. Macroeconomic factors and central […]
The month of August was characterized by a lack of direction across many of the major stock market indices. Despite any notable trend, several of our premium trading strategies were able to profit and put in a solid month of results.
The benefits of having a profitable trading system are clear. Wealth generation, freedom, reduced stress. But there are problems too, which most system developers sweep under the carpet. In this post we will look at some of the disadvantages associated with trading systems. 1. Trading Systems Can Have Lengthy Drawdowns Unfortunately, it’s not uncommon to […]
Doing some analysis about September 11th got me thinking and I noticed that Friday is quadruple witching day. If you don’t know, quadruple witching (or triple witching for some) occurs on the third Friday in March, June, September and December. This is when stock index futures, stock index options and stock options all expire on […]
I try to keep Marwood Research topped up with new trading strategies every month. This month, another interesting investment strategy has been added to our program called Mid Cap Winners. Mid Cap Winners is a medium term investing system designed for the mid cap space with an average holding period of around 60 days.
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 […]
Longer term readers and members will know that I try to keep Marwood Research updated with new trading strategies and information on a monthly basis. This month we have added a brand new trading strategy to the program called Trading For Yield.
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.
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 […]