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Some traders classify trading strategies as convergent or divergent. Trend-following strategies can be both convergent and divergent. Convergence and divergence are two terms often used in technical analysis to describe how price moves relative to an indicator. If the price and ...

The week ending November 11, 2022, was a bad one for trend-following due to violent reversals in equities, fixed-income, and forex markets. The violent reversals occurred after the October CPI release and the expectation of “peaking inflation”. The S&P 500 and ...

Starting today, we are offering price action anomaly detection for 32 ETFs to our Market Signals and All-in-One subscribers as a free bonus. Below is a recent example of price action anomaly detection. Results of DLPAL DQ price anomaly detection for 32 ...

This is a trend-following strategy for trading futures contracts in the daily timeframe, with a brief discussion of the risks and limitations For all backtests in this article, we used Norgate data. We highly recommend this data service (we do not ...

Trade exits are important in trend-following because they determine how well the strategy captures trends. But trade entries make the difference and deliver the alpha. Read the article with a Trend-Following subscription. 

In the short-term fundamentals may affect investor sentiment and behavior, but in the long term, they are a poor predictor of equity market returns. Many traders with skin in the game have noticed a low correlation between fundamentals and equity market ...

Based on historical returns since 1987, I show that the returns of top AUM CTAs and discretionary trader returns are statistically indistinguishable. Read the article with a Trend-Following subscription. 

Is strategic diversification with tactical investing an oxymoron schema? In a sense, it is, and it also has some hidden risk variables. However, even strategic investing has an embedded tactical investing dimension. Equity indexes are frequently rebalanced based on constituent strength ...

Most records in the market depend on the metric under consideration. When the metric changes, the performance changes, and records can vanish. An example of recent US dollar index performance is included. The US dollar index has stayed above its 200-day ...

The image of the patient passive investor is probably wrong. These investors are the greediest and try to squeeze every basis point of return out of the market while blaming traders, the Fed, banks, and everyone else during bear markets. Passive ...