- DLPAL DQ Performance on a Down Stock Market Day October 7, 2018
After the close of Thursday, October 4, 2018, DLPAL DQ suggested four stocks from the tracked universe, two long and two short. All stocks generated profits next day from the open to the close on Friday, October 5, 2018. One ...
- “Turnaround Tuesday” October 3, 2018
Some people we follow in Twitter who have been trading for a long time often talk about “Turnaround Tuesday” if Monday is a down day in the stock market. Below is the analysis.
- Leveraging the Performance of a Weekly Mean-Reversion Strategy October 1, 2018
A Market Signals subscriber from beautiful Brazil inquired about the possibility of using a leveraged ETF in place of SPY ETF, or even account margin, for boosting the performance of our MRSPYW weekly mean-reversion strategy. Below is our analysis. MRSPYW is ...
- Let’s Trade Ripple September 30, 2018
Ripple (XRP) has gained about 120% in the last two weeks due to announcements that the company will be launching soon their settlement system, called XRapid. Actually, let’s not trade XRP, I was kidding. I will explain why below. But first ...
- Detecting Anomalous Price Action in Daily Timeframe September 27, 2018
Successful detection of anomalous price action in the daily time frame can offer an edge, especially under the discretion of an experienced trader. In this article we discuss one method of detection and include an example of the results. Why detection ...
- Issues With Bitcoin Correlations September 19, 2018
There are a few issues when calculating correlations between bitcoin and traditional markets for use in asset allocation. Two examples are included below. A few days ago I saw a tweet by a”bitcoin investor” recommending that investors should include the cryptocurrency ...
- When a High Reward – Risk Setup Is Actually Just High Risk September 13, 2018
Visual charting is plagued by confirmation bias and ambiguous reward-risk. Traders need more objective ways of identifying setups and calculating reward-risk than visual analysis of charts, which rarely works. In this blog we have discussed several times the perils of charting ...
- Forty percent of Amazon Growth Since 2012 Due to Few Daily Returns September 3, 2018
The chart below shows that about 40% of the growth of $1 invested in Amazon stock since 2012 was due to four daily returns in excess of 10% The top indicator chart shows daily returns since 01/2012. There are only four ...
- Are Trading Strategies Based on the RSI2 Random? August 29, 2018
The Relative Strength Index is a popular indicator for developing short-term long-only strategies but careful analysis shows that its performance depends on price action dynamics and as a result ex-ante parameter selection is hard or impossible. In my book Fooled By ...
- Robustness Testing of Trading Strategy Data Mining Process August 23, 2018
How do you test the robustness of a process that automatically develops trading strategies? There a few methods for achieving that but their effectiveness depends on the market conditions included in the data sample used for validation of the results. If ...
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