So you are bullish on a specific stock, but you also have realised that timing is major problem? So what would be the best strategy to implement your bullish opinion but avoid the problems of any timing strategy?
Selling a put option might be the answer. Continue reading
“The stock market is never obvious. It is designed to fool most of the people, most of the time” Jesse Livermore Continue reading
In this article I will discuss a simple algorithmic stock picking approach based on momentum and volatility. The goal will be to generate excess returns versus a capital weighted stock basket. Continue reading
Markets have a high degree of randomness (and madness), but there are some things which hardly change over time. One is the width of an average market move before a counter-move can be observed. Continue reading
Over the last days and weeks some traders have been worried if the currently ongoing correction in the markets will evolve into a crash, or if it is just a normal correction. Continue reading
Usually it makes no sense to fight against normal distribution. But there are setups which have got a high probability of unexpected behaviour. Volatility can be the key to future market movements. Continue reading
The Weis Wave indicator combines trend and volume information. It seems to be of some interest for timing short term market reversals. Here comes a version of this indicator for usage in Tradesignal. Continue reading
Implied volatility data is key in options trading. This article shows how to access free volatility data in the Tradesignal software suite. Continue reading
Volatility trading: when to buy and when to sell volatility Continue reading
The Hindenburg Omen is an indicator which is believed to forecast market crashes. Unfortunately it does not work, but the idea behind this indicator is worth to be discussed. Continue reading
(1) You shall only trade when the chances are on your side Continue reading
“Tomorrow never happens. It’s all the same fucking day, man. ” Janis Joplin Continue reading
Ever since John Bollinger introduced his Bollinger Bands in the early 1980s the bands have been a favourite indicator to all technical trades. This article is about the prediction capabilities of Bollinger bands. Continue reading
I have been in search for a signal I could use for a short vertical spread or naked short option strategy. So my main concern has been to find a level, which will most probably not be penetrated over the next few bars.
This is what I came up with. Continue reading
The markets will go up and down, and usually it’s not my business why they do it, I am just interested in making my luck with a position on the right side of the trade. Continue reading
If you want to trade volatility, you can place a bet on the option market. Just buy an at the money put and call, and at expiry day you will either win or lose, depending on the actual market move since you bought the straddle and the price you paid for the straddle. To put it simple, if the market moves more than you paid for the two options you will win, otherwise you will lose. This article is about a back test of volatility. Continue reading
The 200 day average is considered as a key indicator in everyday technical analysis. It tells us if markets are bullish or bearish. But can this claim be proved statistically, or is it just an urban legend handed down from one generation of technical analysts to the next? Let’s find out and demystify the 200 day moving average. Continue reading
Sometimes my data provider has not got the data I am looking for. Searching for downloadable csv data I recently came across google spreadsheets. It provides an easy way to get historical stock price data. Save it as csv and use it with your Tradesignal. Continue reading
We already had a post regarding the mean reverting tendency of Volatility, now it`s time to make some money using this information. Continue reading
If a bitchy prime minister and a crazy president weren’t enough, for the upcoming months the seasonal chart is also indicating further price setbacks. Continue reading