Knowledge Centre

Gold Chart Research 24 September 2020

Is Gold Really That Good?

Gold! We’ve had a several queries about Gold in the last few weeks. Scott Goddard regularly reviews Gold in the Global Chart Research section for members. Yesterday (24th Sept) Scott posted his latest Gold review. You can read and watch a short video of Scott’s review here. BOTTOM LINE 24 September 2020: Daily Trend: Down […]

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chart crimes

Chart Crimes

We’ve all been exposed to chart crimes. Social media, namely FinTwit, probably contains the worst (best?) chart crimes. Here is a typical example. In 2017 FactSet Data posted the chart below. The blue line is the 1987 crash. The green line was an overlay of the stock market in 2017, the conclusion (allusion) being that […]

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stock exchange

Is a Stretched 200-day Average a Proxy for a Trend Reversal?

In the last week several commentators have been discussing the extreme distance between the NASDAQ and its 200-day moving average. Theory is that when the index is stretched far above its 200-day moving average it’s more liable to snap back. Let’s take a look at: (a) Does an extreme stretched differential lead to a major […]

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stock split part 2

Stock Splits – Part 2

In our last article we discussed stock splits. When testing trading systems, the first step is to use an accurate data source. In the computer science world the term, ‘Garbage in, garbage out’ is used for good reason. Computers make calculations using logical processes. A computer will therefore process unintended, even nonsensical, data – known as […]

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Stock Splits – To Buy or Not?

Some large corporate activity has been taking place with Apple announcing a 4-for-1 stock split on July 31st, and Tesla announcing a 5-for-1 split this week. Both stocks powered higher on the news. So what is a stock split and does it induce buying? Stock splits are a way for a company to increase the […]

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k.i.s.s. trend following part 2

K.I.S.S. Trend Following – Part 2

In K.I.S.S. Trend Following Part 1 we were breaking down a trend following system into basic pieces starting with finding a low risk entry to limit losses. Now we’ll look at the second piece of the puzzle; running winners using a trailing stop. Before we get going, download your free Glossary:  A Guide to Market Terminology here. […]

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buy & hold chart

Trading and Hindsight Bias – Part 1

What is Hindsight Bias? “Had you invested $1 in XYZ in 1943 it would now be worth $1.9 billion“. I knew it was a good investment! The problem is we actually didn’t know it all along, we only feel as though we did. That’s hindsight bias. Another typical example came across my desk recently. To […]

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K.I.S.S. Trend Following – Part 1

Trend Following Note: Be aware what I propose here is not a complete system – far from it. The goal is to provide a starting point from which to undertake further research and evaluation. With regard to trend following, one of the most frequent queries I receive is, “Where do I start?” Here’s the thing; […]

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Trading Mastermind

Trading Mastermind Your special topic for today is Trading Psychology. Your time starts now. Question: How can you overcome your most debilitating psychological trading barriers? My Answer: Go out and get another job. We’ve discussed this before. And I don’t mean stop trading. I just mean add some other revenue streams into your bread winning basket. If […]

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Where To Get Trading Strategy Ideas

I’m often asked how I come up with strategy ideas to test and potentially put to work. Unfortunately I’m not an overly creative person, at least not when it comes to creating something from scratch. However, I am creative at adding my own ‘colour’ to other ideas floating around the ether. For example, our main […]

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