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An analysis based on signal-to-noise ratio yields interesting conclusions about the future direction of the stock market. The signal to noise ratio (SNR) for a period N is defined here as the mean return divided by the standard deviation of returns ...

We do not offer a volatility strategy signal service due to the high risk of ruin. Here is a free strategy for trading ZIV and VXX along with measures of risk and comparison to our SPY MR5 mean-reversion strategy. As we ...

This is an update on the status of this important indicator. For more details about the Hurst indicator and its significance you may search the article in this blog. The important take is that low values of this exponent in S&P ...

There is no free lunch in portfolio allocation as any scheme that reduces the impact of adverse market conditions also adversely affects returns in bull markets.

Charts appeared in financial blogosphere after the all-time high in the index on Friday, January 12, 2018, that show the highest level in weekly or even monthly RSI(14) in more than 100 years in S&P 500. Do these charts make ...

In this article we compare current market and trading leverage levels in S&P 500 and Nasdaq-100 to levels before major corrections. Results are interesting. One measure of the optimal leverage (Edward O. Thorp), also known as Kelly leverage, is given as ...

This article includes a review of the Momersion anomaly and stocks that exhibit high tendency of mean-reversion to the upside. The Momersion indicator was introduced in this article. This indicator measures momentum and mean-reversion tendency. If the value is above 50, ...

There is no edge in this hype about the stock market. More details are included below. As the year end is getting closer, there is hype and statistics about a rally in stocks. As the chart of the S&P 500 since ...

This is a typical tweet that shows lack of understanding of markets and technical analysis. These tweets are very common. I just saw this tweet this morning: https://twitter.com/HumbleStudent/status/942986069804568576 These breadth indicators measure momentum, not overbought conditions. Overbought is assumed in the sense of ...

Traders fail for many reasons but a common one is that they listen to failed traders.