- Inflation Is Not Falling December 14, 2022
Based on the latest CPI release, what fell is year-over-year inflation or the 12-month rate of change of the Consumer Price Index. But different lookback periods paint different pictures depending on their length. The YoY change of CPI is just one ...
- Small Caps Trend-following Strategy December 13, 2022
Does trend-following work on stocks, especially on small-cap stocks? Many have misinterpreted answers to this question that have been offered in the past. In this article, we discuss some of the issues with trend-following small caps and present backtest results ...
- Investment Skill is a Poor Substitute for Long Life Expectancy December 10, 2022
There is a significant difference between buy and hold periods of 30 years and 50 years. The “magic of compounding” accelerates after about 30 years. Most people don’t have long investment horizons or do not live long enough to realize ...
- Mean Reversion Can Also Provide Convexity December 9, 2022
One of the attractive properties of trend-following is that it provides convexity during equity bear markets and crashes. Mean reversion has also provided convexity but in a different context and application. Read the article with a Trend-Following subscription.
- Using DLPAL DQ To Identify and Validate Outliers in Market Price Action December 5, 2022
DLPAL DQ software can be used to identify potential outliers in daily and weekly price data. No programming is required. Below is a summary of how the DLPAL DQ software is normally used: Tasks performed once Step 1. Generate initial OHLC data for ...
- Simplicity Wins: Up 8% Year-To-Date With Long-Only Dow 30 Stocks December 4, 2022
Simplicity wins when it is compatible with the market dynamics. This is the case with the B2S2 strategy for trading Dow 30 stocks. Despite the strategy being long-only and having no filters and no parameters to optimize, it is up ...
- Trend-Following: Classical vs. Quant Traders November 24, 2022
In trading, there is often a difference between what people think they are doing, and what they are actually doing, depending on a perspective. In trend-following, there are two main schools of thought. Read the article with a Trend-Following subscription.
- Convergent Vs. Divergent Trading Strategies November 19, 2022
Some traders classify trading strategies as convergent or divergent. Trend-following strategies can be both convergent and divergent. Convergence and divergence are two terms often used in technical analysis to describe how price moves relative to an indicator. If the price and ...
- A Bad Week For Trend-Following November 14, 2022
The week ending November 11, 2022, was a bad one for trend-following due to violent reversals in equities, fixed-income, and forex markets. The violent reversals occurred after the October CPI release and the expectation of “peaking inflation”. The S&P 500 and ...
- Price Action Anomaly Detection Signals November 10, 2022
Starting today, we are offering price action anomaly detection for 32 ETFs to our Market Signals and All-in-One subscribers as a free bonus. Below is a recent example of price action anomaly detection. Results of DLPAL DQ price anomaly detection for 32 ...