Heikin Ashi Trading Rules And Strategy
Heikin Ashi is a Japanese candlestick variant that averages price data to produce smoother charts, making trend direction clearer. A simple trend‑following rule—buy when the Heikin Ashi close crosses above its open and sell on the opposite crossing—was backtested on the S&P 500 from 1960 to the present using monthly bars. The strategy delivered a 5.2% annualized return, a 7.3% risk‑adjusted return, and a maximum drawdown of 29%, compared with a 7.5% return and 52.6% drawdown for a buy‑and‑hold approach. It kept the portfolio in the market about two‑thirds of the time with a 52% win ratio.
What Happens To Stocks When Bond Yields Go Down?
The article explains that falling bond yields typically lift stock prices, as lower interest rates make equity cash flows more valuable and shift investor appetite toward riskier assets. A backtest using SPY and TLT from 2003‑2025 shows that going long...
Volatility ATR Bands Trading Strategy Backtest Results
The Volatility ATR Bands strategy leverages dynamic price bands based on the Average True Range to capture short‑term explosive moves while keeping market exposure minimal. Backtested over 26 years on the Nasdaq‑100, it delivered a 12.5% annualized return, outperforming the...
Multi-Timeframe Analysis And Strategy
Multi‑timeframe analysis pairs a higher‑level chart to set market direction with a lower‑level chart to time entries and exits. The approach was backtested on the XLP consumer‑staples ETF, using a 250‑day, 22‑day and three‑day pullback filter, resulting in 316 trades....
Reversal Day Strategy For The Markets
The article outlines a bullish reversal‑day trading model that enters long positions when a lower low coincides with a higher close and the 5‑day RSI falls below 35. Applied to the gold ETF GLD, the backtest shows an average 1.5%...
The IBS Indicator: The Powerful Indicator You Have Never Heard Of
The Internal Bar Strength (IBS) indicator measures a stock’s closing price relative to its daily range, oscillating between 0 and 1. A low IBS suggests the close is near the day’s low (oversold), while a high IBS indicates a close...
Crude Oil Day Trading Strategy
Crude oil’s deep, liquid futures market makes it a prime playground for day traders and systematic strategies. A 2019 study found that the price movement in the first half‑hour of trading (9:30‑10:00 a.m. EST) reliably predicts the final half‑hour (3:30‑4:00 p.m. EST)....
The Risk of Losing Money in the Stock Market
The article examines the probability of losing money in the stock market, showing that short‑term volatility is common but long‑term outcomes are overwhelmingly positive. Data from the S&P 500 reveal that 5% pullbacks happen multiple times a year, 10% corrections every...
