Tag Archives: SPY

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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Performance Of the PSI5 Mean-Reversion Strategy Since The Financial Crisis Bottom

The PSI5 mean-reversion strategy has outperformed the buy and hold performance of SPY total return since the bottom of the financial crisis on a risk-adjusted basis.

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Buy The Dip On The Decline

Buy the dips has been a profitable simple strategy this year but its effectiveness is now on the decline after topping in February of this year. Often a top in this strategy is followed by a short-term correction due to … Continue reading

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Stationary Win Rate Examples

Visual chartists, also known as noise traders, in the process of defending a method with low win rate claim that high win rate strategies do not exist. When presented with evidence to the contrary they argue that high win rate … Continue reading

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Major Correction Indicator With A Sample Of One And A Half

Most indicators that attempt to time a stock market top suffer from the curse of small samples, especially after the 1990s, when a significant change in market dynamics occurred. Although there is lack of statistical significance, the information they provide … Continue reading

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Investing in European Stocks is a Forex Bet

Many financial advisers think that European stocks will outperform U.S. stocks. Evidently, they are talking about a forex bet.

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