The Market Meanness Index is a technical indicator developed by JCL from the Financial Hacker website. In this article we will describe what the indicator is designed to do and provide some code for Amibroker users. MMI is a statistical algorithm based on the median value of a price series. It’s purpose is to help […]
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.
Good Results From Backtesting A FINVIZ Stock Screen
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 […]
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 […]
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.
10 More Ways To Follow The Trend
Trading Systems That Work: Stress Testing Trading System 20
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.
How To Scrutinize & Improve A Trading System
In my book, I detailed 20 original trading systems and tested those systems on historical stock data going back to the year 2000. Some of those systems produced reasonable results and indicated promise for future trading. Many were able to capture some nice trends like this one in CarMax Inc: However, one back test is […]
This is why forex trading is not easy (simple trading systems debunked)
People often want to know whether forex trading is profitable. They see a strategy online promising 1000% returns and millions of dollars in profits and wonder whether they too can become successful forex traders. On the flip side, though, they will also have heard the stories of those traders who have lost money and in […]
20 Quantitative Trading Systems
The term ‘quant’ or ‘quantitative trading system’ conjures up the image of a smart math graduate on the desk of an investment bank who spends their time creating sophisticated short-term algorithms. Such algorithms that pull millions of dollars from the market in a blink of an eye. However, and though there are many of these […]
50 Day Moving Average Strategy – Put To The Test On Stocks
In this article I look at a simple 50 day moving average strategy and use the simulator from Amibroker to test the strategy on the stock market. When it comes to technical analysis and trend following there is no shortage of naysayers. Academics like to say that markets are perfectly efficient and that short term […]
29 Rules for Trend Following Stocks
Trend following is an investment strategy based on the technical analysis of market prices, rather than on the fundamental strengths of the companies. Wikipedia My own view is that trend following is not necessarily based on technical analysis, which can sometimes have a bad name. I believe trend following is more about the philosophy that […]
