Tag Archives for " Trend Following "

Step One In Building An Intraday Trading System

If you have been reading System Trader Success for a while you’re probably familiar with how I develop trading systems. The very first step is to come up with a simple idea to act as the seed or core of your trading system. I call this your key concept. This key concept is a simple […]

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Capture The Big Moves!

Wouldn’t it be great to have an indicator to help tell you when we are in a major bull or bear market? Imagine if you had a clear signal to exit the market on January 19, 2008 before the major market crash. Then the same indicator told you when to get back into the market […]

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World’s Simplest Trading System

a-tree-on-the-horizon

Here’s the system: At the end of every month, if the index is above its 10-month simple moving average: the portfolio is 100% in the market if the index is below its 10-month simple moving average: the portfolio is 100% in cash  And that’s it. So, if we take the FTSE 100 Index as an […]

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When To Go Short: S&P Intraday Price Study

When To Go Short: S&P Intraday Price Study

This article is going to be an extension of a previous article where we performed an intraday price study. We do this by exploring different market sessions to determine if we can find an edge for a possible intraday trading system. If you have not read the previous article, When To Go Long, I urge you […]

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Seasonality S&P Market Session

In a recent article, Seasonality Study, I took a look at the classic seasonality effect as seen in the U.S. markets. Briefly recapping that article, it shows that the trading days between November through May appear to hold significant gains in the market while the trading days between June and October hold far less profit. In this article I […]

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Dual Momentum – The Famous 5 Portfolio

This article describes a Dual Momentum study over a multi-asset ETFs basket with a new attempt to improve this well-known investing style. Dual Momentum strategies rely on two different very simple filters: absolute momentum and relative momentum. Absolute momentum (rule 1) is a trend following filter used to switch any selected assets that have a […]

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What is the difference between Relative Strength and Trend Following ?

The Different

After publishing our Two Centuries of Momentum article last week, we received a number of requests for our thoughts on the recent underperformance of multi-asset, relative strength portfolios Now, we tend to fall more on the trend following side of momentum.  So we wanted to spend some time talking about the difference between relative strength and […]

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The Death Cross – What You Need To Know

How well does the Death Cross or the Golden Cross predict future market behavior? One way to see is to create a simple trading system based upon the the Death Cross and Golden Cross signals. Using EasyLanguage it’s simple to create a trading system that is always in the market switching between a long position and short position based upon a moving average crossover. Check out the performance summary. You might be surprised!

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Backtesting the MAC-System – How Long is Long Enough?

Most of us entrust our savings to financial organizations in the belief that this will provide us with better investment results than we could have achieved ourselves. These companies advocate a buy-and-hold strategy of bond- and stock funds, charge fees, and usually perform poorly. A convenient way to improve on buy-and-hold and to do better […]

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Market Phase – Going Beyond The Death Cross

There are many ways to use indicators to help determine when the market is within a bull or bear mode. A common method that works well on trending markets over the long-term has been the so-called death cross and golden cross (Death/Golden Cross) indicator. This topic was discussed in a former article called, The Death Cross – What You […]

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