8 QUANTITATIVE TRADING STRATEGIES | (BACKTESTS, SETTINGS, AND RULES) 📊🔍
In this video, we explain 8 quant trading strategies with detailed examples, complete with trading rules and backtests.
#tradingstrategies
CANDLESTICK PATTERNS TRADING STRATEGIES - WHICH ONE IS BEST? 📊🕯️
In this video, we'll provide you with definitive answers by presenting the results of our extensive backtesting of ALL the candlestick patterns.
#tradingstrategies
Rotation Strategy In S&P 500 And Gold (SPY & GLD)
When the S&P 500 and gold ratio is above its moving average, ie. when stocks are performing better than gold, we are long S&P 500 the coming month. When the ratio falls below the moving average we switch to gold. Pretty simple,
Williams %R Trading Strategy – Williams Percent Range vs RSI (Backtest, Indicator & Systems):
Williams %R does work. In this article, we explain how to use Williams %R in a trading strategy, and finally, we backtest trading strategies to see if Williams %R works. Does it work?
3 Best Mean Reversion Trading Strategies: Backtested Buy and Sell Signals Analysis
We are presenting free mean reversion strategies. We discuss why mean reversion works and which markets are best for mean reversion trading strategies, and also some historical backtesting.
We
RSI SPY Trading Strategy (RSI(2) On SPY )
It turns out that our hypothesis is correct: the RSI works well on SPY. Even better, we improve the strategy by adding one extra indicator.
The trading strategy is really simple and reads like this in plain English:
* If RSI(2) is less
3 RSI TRADING STRATEGIES - RELATIVE STRENGTH INDEX (BACKTEST AND RULES) 📉
In this video, we present a small sample of our best RSI trading strategies along with their trading rules and backtest results
MACD Trading Strategies (Backtest, Indicator, Rules and Settings):
The MACD indicator is a useful tool and seems to work on stock indices. How do you trade with MACD strategy? We find the indicator useful to make MACD trading strategies.
The MACD is an oscillating indicator
Triple RSI Trading Strategy: Boost Your Win Rate to 90%:
The Triple RSI trading strategy has four variables – three of them are based on the RSI. The strategy has few trades but a solid 90% win rate.
We backtest the following trading rules:
* The 5-day RSI is below 30, and
*
We have been
#quantitative
traders, both retail and proprietary, for over two decades since we started in 2001.
Below is 8 simple quantitative
#TradingStrategies
to help you get started:
Triple RSI Trading Strategy: Boost Your Win Rate to 90%:
The Triple RSI trading strategy is a modified version of the RSI strategy with four key variables, three of which are based on the RSI. It focuses on mean reversion, and the trading rules involve conditions related to RSI
Williams %R Trading Strategy – 81% Win Rate – Williams Percent Range vs RSI (Backtest, Indicator & Systems)
Williams %R does work. In this post, we explain how to use Williams %R in a trading strategy, and finally, we backtest trading strategies to see if Williams %R works. Does
SPY Trading Strategy Using RSI:
It turns out that our hypothesis is correct: the RSI works well on SPY. Even better, we improve the strategy by adding one extra indicator.
We backtest the following trading rules:
* If RSI(2) is less than 15, then enter at the close.
* Exit on
Mean reversion vs. trend following:
MR: high win rate, many trades, small gains, rare big losers, negatively skewed. Fat tails problematic.
TF: low win rate and big winners. Fat tails are to your advantage.
Combine them in your portfolio!
#TRADINGTIPS
#TradingSignals
Best Indicators For Swing Trading
The best indicator for swing trading is Williams’s %R. It is one of the least known or used indicators but definitely one of the best swing trading. We tesed six indicators and based our conclusions not necessarily on the highest return, but
WILLIAMS %R TRADING STRATEGY – 81% WIN RATE – WILLIAMS PERCENT RANGE VS RSI 📉
Williams %R does work. In this post, we explain how to use Williams %R in a trading strategy, and finally, we backtest trading strategies to see if Williams %R works. Does it work? Our conclusion is
OSCILLATING INDICATORS TRADING STRATEGIES: STATISTICS, FACTS, EVIDENCE AND HISTORICAL BACKTESTS! 📊
We rank Williams %R as the best oscillating indicator for trading strategies. It’s certainly not the most known nor the most used, but in our humble opinion, our backtests proved
The
#donchian
channels/bands work well for
#trendfollowing
in
#commodities
.
Not so useful for stocks.
But if we turn the rules upside down in $SPY it works pretty well:
S&P 500 Momentum Strategy – As Simple As It Gets (Rules, Setup and Backtest Results)
A momentum strategy for the S&P 500 works. We use monthly bars and a simple moving average strategy crossover system.
We backtest the following trading rules:
* When the close of the current
3 Best Mean Reversion Strategies: Backtested Buy and Sell Signals Analysis
Today we are presenting three free mean reversion strategies. They were partially published on this website a few years back, and today we make some minor adjustments and present their performance on
The Internal Bar Strength (IBS) Indicator [Trading Strategies, Rules + Video]:
The Internal Bar Strength indicator (IBS) has worked remarkably well for over two decades. We can only guess why, but the stock market has been highly mean-reverting during this period, and this has,
Nasdaq (QQQ) Mean Reversion (Trading Strategy Analysis):
The Internal Bar Strength indicator (IBS) has worked remarkably well for over two decades. We can only guess why, but the stock market has been highly mean-reverting during this period, and this has, of course, given the
Rubber band trading strategy
Free and simple yet powerful contrarian/mean-reversion
#TradingStrategy
for trading stocks, which is easy to understand and easy to trade.
MACD and RSI Strategy: 81,41% Win Rate
The MACD and RSI strategy refers to a trading method that makes use of both indicators in analyzing and trading the markets. The combination of both momentum indicators may give more insight into what the market may do next and how it could
Triple RSI Trading Strategy: Boost Your Win Rate to 90%
Today, we unveil a fresh perspective on RSI with the Triple RSI Trading Strategy. This innovative approach harnesses the power of RSI in a new and modified form, boasting an impressive 90% win rate.
We backtest the
NR7 Trading Strategy – The Narrow Range 7 (But Better and Improved):
The NR7 trading strategy is a narrow-range strategy that is both well-known and popular. If you do a search on the internet, you get multiple hits on the strategy. To our knowledge, the strategy was first
Larry Connors’ Multiple Days Up And Multiple Days Down - Trading Strategies Analysis
Chapter 6 of Larry Connors‘ High Probability Trading contains a trading strategy called Multiple Days Up (MDU) And Multiple Days Down (MDD). The book was published in 2009, the trading tests
Best Indicators For Swing Trading:
One of the least known or used indicators is the best one for swing trading: Williams %R. We test six indicators and base our conclusions not necessarily on the highest return, but rather on the indicator with the best risk-adjusted return.
Bull Market Signal Strategy – How To Predict A Bull Market (Backtest)
The bull signal is the following: 18 consecutive closes above the 200 SMA in a bear market. After the bull market signal, the forward returns tend to be pretty strong. The market is up 21.84% on average one
IBS - INTERNAL BAR STRENGTH TRADING STRATEGY (STATISTIC & BACKTEST) 📊
In this video, we'll show you why it's one of the best tools you can use for your stock market trading, and we'll take you through three different strategies that we've backtested and proved on a variety of
WARREN BUFFETT'S BEST INVESTMENT STRATEGY (90/10) 💼
Many of us aspire to invest like Warren Buffett, and in this video, we'll be exploring one of his most popular investment strategies known as the "Warren Buffett ETF Portfolio (90/10).
#TradingStrategies
Effective VIX Futures Trading Strategy Backtest And Example:
A VIX futures strategy refers to the methods and techniques you can use to trade VIX futures, which are financial derivative products that represent a contract to trade a specified unit of the index at a pre-agreed
Triple RSI Trading Strategy: Boost Your Win Rate to 90%
In this post we explain a fresh perspective on RSI with the Triple RSI Trading Strategy. This innovative approach harnesses the power of RSI in a new and modified form, boasting an impressive 90% win rate.
With just 83
Triple RSI Trading Strategy: Boost Your Win Rate to 90%:
We unveil a fresh perspective on RSI with the Triple RSI Trading Strategy. This innovative approach harnesses the power of RSI in a new and modified form, boasting an impressive 90% win rate.
We backtest the following
Williams %R Trading Strategy – Williams Percent Range vs RSI (Backtest, Indicator & Systems):
Williams %R does work. In this article, we explain how to use Williams %R in a trading strategy, and finally, we backtest trading strategies to see if Williams %R works. Does it
3 Best Mean Reversion Trading Strategies: Backtested Buy and Sell Signals Analysis:
Today we are presenting three free mean reversion strategies. They were partially published on this website a few years back, and today we make some minor adjustments and present their
Bollinger Band Squeeze Strategy Explained – Backtest And Performance:
The Bollinger Band Squeeze strategy is about going in the same direction as the breakout after a period of low volatility. The assumption is that the breakout sets the tone of the action over the following
MAGICAL RSI TRADING STRATEGY (BACKTEST & RULES) ✨
In this video, we'll be discussing a proven trading strategy that has delivered consistent annual returns of 56% (risk-adjusted) by exploiting the mean reversion effect in the stock market.
#TradingStrategies
MERGER ARBITRAGE TRADING STRATEGY (PERFORMANCE, BACKTEST, RESULTS) 📊
Merger arbitrage is a specialized trading strategy that seeks to capitalize on price differentials between a target company’s stock price and the offer price during a merger or acquisition. This strategy
Larry Connors’ Multiple Days Up And Multiple Days Down | Trading Strategies Analysis
Chapter 6 of Larry Connors‘ High Probability Trading contains a trading strategy called Multiple Days Up (MDU) And Multiple Days Down (MDD). The main idea of the strategy is that ETFs revert to
RSI & ADX Trading Strategies (Backtest and Rules)
The RSI, ADX, (and IBS). These technical indicators are good for short-term mean-reversion or trend-following strategies. They complement each other. RSI and ADX are good for short-term reversals, and opposite, ADX is a quality
3 bullish
#candlestick
patterns that work!
It turns out, perhaps surprisingly, that some candlestick patterns work reasonably well.
We backtest Bearish Engulfing Pattern, Three Outside Down, and Bullish Harami:
SPY Trading Strategy Using RSI:
It turns out that our hypothesis is correct: the RSI works well on SPY. Even better, we improve the strategy by adding one extra indicator.
We backtest the following trading rules:
* If RSI(2) is less than 15, then enter at the close.
* Exit on
Triple RSI Trading Strategy: Boost Your Win Rate to 90%
Today, we unveil a fresh perspective on RSI with the Triple RSI Trading Strategy. This innovative approach controls the power of RSI in a new and modified form, boasting an impressive 90% win rate.
With just 83 trades
Larry Connors’ R3 Strategy (It Still Works) - Trading Strategies Explained
Today we test Larry Connors‘ R3 strategy and we continue backtesting the trading strategies Larry Connors and his team published in 2009 in a book called High Probability ETF Trading. All the strategies
Triple RSI Trading Strategy: Boost Your Win Rate to 90%
Today, we reveal a fresh perspective on RSI with the Triple RSI Trading Strategy. This innovative approach harnesses the power of RSI in a new and modified form, boasting an impressive 90% win rate.
With just 83 trades
Averaging Down Trading Strategy (Statistics, Facts, & Historical Backtest)
Averaging down is a trading or investing method in which a stock owner buys more shares of a previously bought stock after the price has fallen. The main idea behind the average down technique is that it
3 Best Mean Reversion Strategies: Backtested Buy and Sell Signals Analysis
Today we are presenting three free mean reversion strategies. They were partially published on this website a few years back, and today we make some minor adjustments and present their performance on
Back in 2017, I developed 9 very short-term strategies in $SPY/ $ES_f / $SPX (max 2 days holding time).
The strategies were based on mean reversion, momentum, and seasonalities.
This is what the backtest looked like (compounded-no leverage):
#tradingstrategy
#trading
The 5-Day Low Overnight Trading Strategy (S&P 500 Overnight in 2024):
This article looks at the performance of the overnight session when the S&P 500 opens at a 5-day low but at the same time, the close is higher than the open.
Here is the testable trading strategy in plain
Supertrend Indicator Strategy (11.07% profit/trade!) – Backtested
The SuperTrend indicator is a type of trend following indicator that was created by trader Oliver Seban. It signals the direction of a trend, its continuation, or changes in direction. Our backtest reveals that
The 200-day moving average is pretty useful as a market regime filter (bull or bear markets).
For example, did you know that the volatility of
#stocks
is twice as high when $SPY is below the 200-day average than above?
Mean reversion vs. trend following:
MR: high win rate, many trades, small gains, rare big losers, negatively skewed. Fat tails problematic.
TF: low win rate and big winners. Fat tails are to your advantage.
Combine them in your portfolio!
#TRADINGTIPS
#TradingSignals
Bollinger Band Squeeze Strategy – Backtest and Performance Insights
The Bollinger Band Squeeze strategy is about going in the same direction as the breakout after a period of low volatility. The assumption is that the breakout sets the tone of the action over the following days
The turn of the month trading strategy (end of month effect)
The turn of the month strategy performs very well in most markets and frequently beats the buy and hold strategy despite its low exposure time. We go long at the close on the fifth last trading day of the month, and we
The 5-Day Low Overnight Trading Strategy (S&P 500 Overnight for 2024):
The S&P 500 has shown strong mean reversion tendencies for many decades. One reason for this is the tailwind in the form of 0.04% average return from the close until the next day open, so-called night
Larry Connors’ %b Strategy (Bollinger Band) - Trading Strategies Explained
The higher the %b reading, the more likely that the market has moved higher. The lower the %b reading, the more likely the market’s trend has been lower. Traders ideally want o buy a low %b reading and
"As a general rule, be very skeptical of your results. The better a system looks, the more adamant you should be in trying to disprove it."
- William Eckhardt
Can a
#tradingstrategy
be improved by adding a volume filter?
We did four different backtests.
For example, the two equity curves below have the same trading rules, but we added a volume filter:
$SPY
Ultimate Oscillator Indicator Trading Strategy (Backtest And Example)
The ultimate oscillator is a type of momentum oscillator designed to capture momentum across three different timeframes, attempting to correct that. Our backtests indicate that the indicator performs well over
One of the most famous day trading strategies is the Volatility Breakout, introduced by Toby Crabel in 1990 and later refined by my friend and market wizard
@LindaRaschke
.
The strategy is simple: when the market moves beyond a certain noisy area, jump on the trend and ride it
Bollinger Band Squeeze Strategy – Backtest and Performance Insights
The Bollinger Band Squeeze strategy is about going in the same direction as the breakout after a period of low volatility. The assumption is that the breakout sets the tone of the action over the following days
Golden Cross Trading Strategy (Backtest Analysis)
Golden Cross Trading Strategy is famous and a cited phenomenon in the media. In this post, we look at the performance of the Golden Cross in the S&P 500.
A Golden Cross happens when the short moving average crosses above the
All-Time High Trading Strategy For Stocks (Frequency)
The S&P 500 spent less than a tenth of its time at all-time highs since 1950. The average number of all-time highs per year is almost 21. But despite this, it has produced decent returns for investors.
In this post, we are
The
#FabianTimingModel
is a
#TrendFollowingStrategy
for the stock market (trading rules in the next tweet).
It is based on an intermarket signal between the $SPX,
#DJ30
, and the utilities sector ( $XLU ).
Our backtest reveals that the strategy has performed well:
Gold Overnight Strategy: Night Trading Rules, Backtest
The Gold Overnight strategy is a trading strategy that is used to take advantage of the overnight price movements in the gold market. The strategy involves buying gold futures contracts or the gold miners ETF at the close of
Mean reversion vs. trend following:
MR: high win rate, many trades, small gains, rare big losers, negatively skewed. Fat tails problematic.
TF: low win rate and big winners. Fat tails are to your advantage.
Combine them in your portfolio!
#TRADINGTIPS
#TradingSignals
What Happens When Stock Markets Are Oversold? (Historical Analysis):
When stock markets are oversold, we can expect strong returns over the next few days. But in the long term, returns gravitate toward the average returns. Thus, oversold stock markets only predict short-term
3 Best Mean Reversion Strategies: Backtested Buy and Sell Signals Analysis
Today we are presenting three free mean reversion strategies. They were partially published on this website a few years back, and today we make some minor adjustments a*nd present their performance on
Calendar Effects in Long-Term Treasuries: TLT Seasonal Trading Strategies Revealed (End of Month Insights):
In this strategy, we look at some specific calendar effects in long-term Treasuries. We backtest some calendar effects by using the ETF with the ticker code TLT which
Williams %R Trading Strategy – Williams Percent Range vs RSI (Backtest, Indicator & Systems)
In this post, we explain how to use Williams %R in a trading strategy, and finally, we backtest trading strategies to see if Williams %R works. Does it work? Our conclusion is that
Trend Following Strategy in S&P 500: (Meb Faber and Paul Tudor Jones):
Go long the S&P 500 when the price crosses the 200-day moving average, and sell when it crosses below the 200-day average. This is probably not the most sensational strategy, to say the least. However,
Did you know that:
- 90.5% of day traders are men;
- Women get better returns;
- Only 1% of day traders consistently make profits over five or more years;
- Day traders who use margin for leverage suffer an average return of -4.53%.
More interesting day trading statistics and
We have compiled a database that contains all the code and logic for all the free strategies on our website.
The strategy/idea list is here:
Mostly ideas are for $spy $qqq $gld $tlt $gdx and $dax .
SPY Trading Strategy Using RSI
In this post, we test an RSI SPY trading strategy. It turns out that our hypothesis is correct: the RSI works well on SPY. Even better, we improve the strategy by adding one extra indicator.
We backtest the following trading rules:
If RSI(2) is
Supertrend Indicator Strategy – (11.07% profit/trade!) | Backtested
The SuperTrend indicator is a type of trend following indicator that was created by trader Oliver Seban. It signals the direction of a trend, its continuation, or changes in direction. Our backtest reveals that
MACD Histogram Trading Strategy in 2024 (Rules, Setup, Backtest, Example)
The MACD-histogram trading strategy is a mean-reversion system that identifies momentum changes and reversal points in the stock market. The strategy has generated 6669 trades on a portfolio of 77 ETFs,