Old school trading wisdom says you should not only buy the strongest stocks but the strongest
stocks in the strongest sectors.
In this article, I discuss a simple breakout system. Then I introduce a basic sector filter which
improves our net profit by around 50%. Full Amibroker code is also provided. Read more »
If you want to put your money in the stock market it makes sense to first analyse the data to see
whether your trading strategy is a good one or not.
In this article I take a look at three technical trading strategies and see how successful
they’ve been over the past 10-18 years. Read
Every major trend in history has begun with a breakout.
However, breakouts also lead to whipsaw trades so it’s sometimes better to join a trend on
a subsequent pullback.
In the rest of this article I will demonstrate a very simple strategy that does just that. Read
In today’s blog post I take a data mining approach to find a potentially profitable trading
strategy based on the movement of US treasury rates.
The idea of this strategy is to find a selection of stocks that respond favourably to a downward
price movement in US Treasury yields. Read more »
The idea behind dollar cost averaging is simple. Every month invest a set amount of money into
the stock market. When the market is high, you’ll be able to afford fewer shares and when it’s
low you’ll be able to buy more shares at a lower price.
Over time, the stock market moves up, your average entry price stays relatively low, and you
begin to accumulate a substantial portfolio. Read
The uptick rule is a short selling restriction that says you can only short sell a stock on an
uptick. In other words, you must wait for a stock to trade a tick higher before you can short
This rule was first introduced in 1938 to promote market stability and investor confidence.
However, the rule has always had critics and was pulled shortly before the financial crisis in
A stock market anomaly is a way to beat the market.
It’s a rate of return or investment strategy that seems to defy the efficient market
Today, most investors agree that markets are fairly efficient even if they don’t believe in the
purest form of market efficiency.
The Hikkake pattern is a simple price action or candlestick pattern that is used to find market
The pattern is essentially an inside day with a fake breakout and is originally credited to
Daniel Chesler CMT. Read more »
This post contains a detailed guide for creating a mean reversion trading strategy.
You will learn what mean reversion is, how to trade it, 10 steps for building a system and a
complete example of a mean reversion system.
Let’s get going!
It’s about time I updated my list of best trading books so here is my selection of the 100
greatest trading and investing books of all time.
I’ve read (or at least partly read) a lot of these and I’ve tried to put them in some
sort of order as well. Not an easy task but see what you think.
If you have any suggestions for other trading books, please leave them in the comments. You can
never have too many book recommendations. Read more