How You Can Trade Better Than The Big Boys
I had a good idea. It was going to make my company millions of dollars per year. It was different, but certainly doable. “How much…
How to Trade like a Turtle without $1,000,000
A simple job ad was placed in a handful of major newspapers calling for participants to be trained as traders. Of the applicants, a total…
How Random is the Market? Testing the Random Walk Hypothesis
A mainstay of academic research into the market is the Random Walk Hypothesis (RWH). This is the idea that market moves are random and follow a normal…
Why I Left Value Investing Behind
You have probably heard the old adage “buy low and sell high.” That’s great, but the question is what is “low” and what is “high?”…
Your Professors are Wrong: You Can Beat the Market
“I have noticed that everyone who ever told me that the markets are efficient is poor.” Larry Hite If you’ve had any academic training in…
How To Reduce Lag In A Moving Average
Moving average indicators are commonly used to give traders a general idea about the direction of the trend by smoothing the price series. One of…
Why you need more data than you think in your Backtest
How many years does it take before you can be confident in a trading strategy? Does one great year mean you have a tremendous strategy?…
How to Trade the MACD: Four Strategies with Backtests
The Moving Average Convergence-Divergence (MACD) is a popular and versatile indicator that appears in a number of trading systems. In it’s most basic form, we have the…
How to Build a Better Trading System
Most trading strategies you find online are of questionable value. So if you’re going to put your money into it, we suggest you build and…
4 Ways to Trade the Trend Intensity Indicator
Determining the strength of a trend can provide a valuable edge to your trading strategy and help you determine when to go long and let…
Testing Turtle Trading: The System that Made Newbie Traders Millions
Trade like a Turtle In 1982, a group of inexperienced traders were recruited to be a part of an experiment that would make many of…
Should you Trade with the Kelly Criterion?
The Kelly Criterion gives an optimal result for betting based on the probability of winning a bet and how much you receive for winning. If…
Test and Trade RSI Divergence in Python
Divergences occur when price and your indicator move in opposite directions. For example, you’re trading with the RSI and it last had a peak at…
4 Simple Strategies to Trade Bollinger Bands
Bollinger Bands have been a popular indicator by traders since they were invented in the early 1980’s. They’re calculated in four, easy steps and are…
How to use Bollinger Bands in your Trading System
Bollinger Bands — first developed by John Bollinger in the early 1980’s — measure the volatility range of a security over time. They provide an…
Size Really Does Matter: Position Sizing and Controlling your Risk
Social media is replete with examples of people showing how much money they made going all-in on Bitcoin, Tesla, Gamestop, Dogecoin or whatever new fad…
Beginner’s Guide to Trading the Stochastic RSI
The stochastic RSI (StochRSI) is regularly used to spot areas where a security’s price has extended too far one way or the other. This makes it ripe…
How to add Exponential Moving Averages to Your Trading Arsenal
Moving average indicators are used in a variety of trading strategies to spot long-term trends in the price data. One potential drawback of simple moving average…
Higher Highs, Lower Lows, and Calculating Price Trends in Python
What happens if the price direction disagrees with your model? For example, the price may be increasing, but your RSI – a derivative of price…
How to Trade with the MACD
The Moving Average Convergence-Divergence (MACD, sometimes pronounced “Mac-Dee”) is a very popular indicator that is frequently used in momentum and trend following systems. In short,…
How to Build your First Mean Reversion Trading Strategy in Python
The beautiful thing about markets is they always move. They may not show strong momentum or trends at any given time, but that doesn’t mean you can’t…
How to Build Your First Momentum Trading Strategy in Python
Have you ever noticed the tendency for stocks that have risen to continue rising in the future? Likewise, a few down days seem to beget more…
Your Free Data is Costing You Money
Garbage in. Garbage out. This old adage holds for all areas of decision sciences, including backtesting your investment strategies. Years of working with financial data…
Backtest your First Strategy in Python
Vectorized Simple Moving Average Strategy to beat the S&P 500 Anyone who follows the financial media has likely seen headlines like: The S&P 500 just formed…
