Bollinger Band Breakout Strategy
A backtest of a Bollinger Bands breakout system on the S&P 500 from 1960 to present shows the portfolio rising from roughly $100,000 to $3.68 million. The strategy buys when the close closes above the upper band and sells when it falls below the lower band, producing 58 trades with a 5.7% compound annual growth rate (CAGR) excluding dividends. It was in the market only 64% of the time and suffered a maximum drawdown of 30%.
MACD Histogram Strategy Backtest
A backtest of a MACD‑Histogram trading rule applied to the QQQ ETF from 2000 to 2026 shows the system still performs well after 14 years. The model executed 124 trades, delivering an average 1.3% gain per trade and roughly 6%...
Buy Weakness, Win Big: The 5-Day Low Trading Strategy
The article presents a systematic 5‑day low mean‑reversion strategy for the S&P 500 (SPY) that buys when the price hits its lowest level over the prior five trading days. A backtest from 1993 to present shows 414 trades, 305 winners, and...
One Simple Momentum Strategy Using 4 ETFs
A straightforward momentum rotation across four liquid ETFs—SPY, EEM, TLT and EFA—selects the asset with the strongest 10‑month performance each month. The back‑test delivers an annualized return of 9.2%, a 61% win rate, a 26% maximum drawdown and a profit...
The Rubber Band Strategy
The Rubber Band trading strategy is a mean‑reversion approach that buys when prices are overly depressed and sells when they become excessively extended, typically using Bollinger Bands or Keltner Channels. The authors backtested the method on SPY, QQQ and XLP...
Overnight Edge in SPY: A Simple Close-to-Close Strategy
An overnight edge strategy for the SPDR S&P 500 ETF (SPY) buys at the market close and sells at the next close. A 30‑year backtest (1995‑2025) that includes realistic 0.06 % per‑trade costs shows an average daily gain of 0.25 %, delivering a...
How the VIX Measures Fear - and Why It Matters
The VIX, derived from S&P 500 index‑option prices, serves as the market’s real‑time fear gauge by estimating 30‑day implied volatility. Its asymmetric behavior—spiking sharply on declines and easing gradually in rallies—reflects how quickly investors demand protection. Historical data show the index...
Backtested Bollinger Bands Trading Strategy
The article outlines a backtested Bollinger Bands strategy applied to the S&P 500, using a 1.5‑standard‑deviation lower band to trigger long entries and a strength‑based exit rule. Over 561 trades the system produced an average gain of 0.52% per trade,...
Moving Average Crossover Trading Strategy
The moving average crossover strategy uses a fast and a slow moving average to generate mechanical buy or sell signals when they intersect. Common pairings include 9/21 EMA for short‑term trades, 20/50 SMA for swing trades, and the classic 50/200...
Candlestick Patterns That Actually Work: Ranked by Backtested Performance
A systematic backtest of 75 candlestick patterns on the SPY ETF from February 1993 to the present identified the most profitable signals. The Bearish Engulfing pattern ranked first, while a combined strategy using the five best patterns delivered a net profit...
ISM Purchasing Managers Index (PMI) Trading Strategy For Stocks
The Institute for Supply Management's Purchasing Managers Index (PMI) gauges U.S. manufacturing health, with readings above 50 indicating expansion. A backtest linking PMI to the S&P 500 shows a 7.3% annual return when the index stays above 50, slightly underperforming...
RSI 2 Strategy Explained: Larry Connors’ 2-Period RSI Trading Rules
Larry Connors’ RSI 2 strategy applies a two‑period Relative Strength Index to spot extreme short‑term price moves. The rule set is simple: buy SPY when the RSI 2 falls below 10 and exit when it climbs above 80. A backtest from 1993...
Easter Trading Strategy: Does the Stock Market Rally Before the Holiday?
The Easter trading strategy exploits a seasonal rally that consistently appears on the Thursday before Good Friday, the market’s last trading day of the week. Backtests using the S&P 500 since 1960 show a 0.35% average gain when buying at Wednesday’s...
Momentum Strategy for the S&P 500
An S&P 500 momentum strategy using a 12‑month simple moving average crossover signals long positions when the monthly close rises above the SMA and exits to cash when it falls below. Backtested from 1960 to present, a $100,000 seed would have...
The Supertrend Indicator Backtested
The Supertrend indicator, a volatility‑adjusted trend‑following tool, was backtested on weekly S&P 500 data from 1960 to the present. Using a 10‑period lookback and a multiplier of three, the simple buy‑on‑cross and sell‑on‑cross rules generated a 44.46% gain on a single...
