The Edge of Technical Indicators

annualised performance

Technical indicators are the basis of all algorithmic trading. But do these really give you an edge in your market? Are they able to define the times when you want to be invested? This article will show you a way to quantify and compare the edge of technical indicators.

S&P500 – when to be invested

S&P day of month performance

The stock market shows some astonishingly stable date based patterns. Using a performance heat map of the S&P500 index, these patterns are easily found. Date based performance The chart below shows the profit factor of a long only strategy investing in the S&P500. Green is good, red is bad. The strategy is strictly date based.… Continue reading S&P500 – when to be invested

Factor investing in portfolio management

selected factor portfolio

Factor investing has been around in portfolio management for some years. Based on algorithmic rules it became the big thing in trading and the ETF industry. But is there still some money to be made? Is small beta still smart or just beta? This article will give you a Tradesignal framework to test the factor… Continue reading Factor investing in portfolio management

Using Autocorrelation for phase detection

Autocorrelation is the correlation of the market with a delayed copy of itself. Usually calculated for a one day time-shift, it is a valuable indicator of the trendiness of the market. If today is up and tomorrow is also up this would constitute a positive autocorrelation. If tomorrows market move is always in the opposite… Continue reading Using Autocorrelation for phase detection

Ranking: percent performance and volatility

When ranking a market analysts usually pick the percent performance since a given date as their key figure. If a stock has been at 100 last year and trades at 150 today, percent performance would show you a 50% gain (A). If another stock would only give a 30% gain (B), most people now would… Continue reading Ranking: percent performance and volatility

Position sizing – the easy way to great performance

Working on your position sizing algorithm is an easy way to pimp an existing trading strategy. Today we have a look at an energy trading strategy and how the position sizing can influence the performance of the strategy. The screenshot shows you the returns of the same trading strategy, trading the same markets, the same… Continue reading Position sizing – the easy way to great performance

EEX Phelix Base Yearly – Buy Wednesday, short Thursday?

When it comes to simple trading strategies, the day of the week is surely one of the best things to start with. That’s nothing new when it comes to equity markets. Everybody knows about the calendar effects, based on when the big funds get and invest their money. I do not know about any fundamental… Continue reading EEX Phelix Base Yearly – Buy Wednesday, short Thursday?