Tag Archives: momentum

In A Nutshell: Why Trading is Hard

Why trading is hard and why mean-reversion has outperformed the golden cross signal in SPY in the last year and a half.

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Where Do Trend-Following Profits Come From?

Before elevating trend-following and momentum in general to the status of a factor, this question must be answered: where do trend-following profits come from? Obviously, part of momentum literature ignores this important question.

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Long-Only Equity Strategy Benchmark

The performance of this strategy can serve as a benchmark for long-only equity strategy development.

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Warning Signs To Help You Avoid Naive Quants

How can one distinguish between someone who is actually playing with a backtesting program and a competent quant? There are a few warning signs.

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Dow Jones Industrial Average Longest Overbought Period In 31 Years

The Dow Jones Industrial Average has stayed overbought for 21 days, which is the longest period this technical condition has persisted in 31 years. As the analysis below shows, the index has moved higher in the following 60 days with … Continue reading

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Beware Of Biased Chart Analysis

Selective perception is common in market analysis and a leading cause of bias. If one looks at charts with an open mind, there are often conflicting signals. Head and shoulders traders in SPY were reminded of this market reality last … Continue reading

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