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There are several methods used to validate trading strategies but each has advantages and disadvantages. In this article we discuss four validation methods. In trading strategy development validation is required because it is easy to over-fit strategies on historical data during ...

Year-to-date overnight price action reveals an interesting dynamic of the stock market and a persistent anomaly. Below is a chart of the low volatility S&P 500 ETF (SPLV) with overnight (brown) and regular trading hours (green) accumulation series. A persistent effect is ...

Trend-following in the 1980s and 1990s meant different things as compared to the description found today in articles and books on systematic trading.

A reference to idiosyncratic trading strategies was made in a market commentary by Neal Berger, the President of Eagle’s View Asset Management. In this article we attempt to clarify what these idiosyncratic strategies are. Below is an excerpt from Neal Berger’s market ...

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

One of the most difficult problems of tactical investing is using timing strategies that are not biased due to special market conditions of the past.

All actions in the markets based on any method, technical or fundamental, amount to forecasts.

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

The correlation between the 60/40 strategic allocation and the equity market in the last 30 years is close to 0.9. Actually, portfolio risk, as measured by maximum drawdown, has only been low during strong equity market uptrends.

Investing in European stocks is a forex bet.