Is it possible to find market inefficiencies when trading or investing? Yes, it's possible to find inefficiencies in the markets. However, if you want to| Quantified Strategies
In today’s computer-driven, fast-paced market, monitoring the limit order book may help you predict price movements. But what is the limit order book trading| Quantified Strategies
An index rebalance trading strategy is a trading strategy that seeks to exploit the price movements of stocks that are being added to or removed from a major market index. Index funds, which are passively managed funds that track a...| QuantifiedStrategies.com
Imbalance trading strategy, also known as order imbalance trading, is a "technical analysis" approach that utilizes the imbalance between buy and sell orders| Quantified Strategies
The stock market seems to move in a highly chaotic way, but on closer observation, you will notice that the movements follow a certain repeating pattern over the long term, as suggested by the Dow Theory. What do you know...| QuantifiedStrategies.com
Since 1993, all the gains in the S&P 500 have come from owning the index from the close to the open the next day. We see the same tendency in the gold markets. Thus, we can develop night trading strategies...| QuantifiedStrategies.com
The risk of ruin in trading is mostly ignored by traders. Most traders are optimists, but the difference between defense and attack is often tiny. What is the| Quantified Strategies
The magic behind Jim Simons' trading strategies consists of collecting an enormous amount of data and analyzing the data to find statistical patterns and| Quantified Strategies
If you’re looking to validate your trading strategies, historical data backtesting is indispensable. By analyzing how your strategies would have fared in| Quantified Strategies
The Center of Gravity (COG) oscillator stands out in the crowded field of technical indicators as a rare predictive tool that aims to anticipate price movements rather than simply react to them. Unlike most lagging indicators that confirm trends after...| QuantifiedStrategies.com
While traditional equity markets have shown diminishing overnight return anomalies since 2008, cryptocurrency markets tell a dramatically different story. Recent analysis reveals that virtually all Bitcoin (BTC) and Ethereum (ETH) returns occur during overnight hours when US equity markets are...| QuantifiedStrategies.com
Correlation in trading strategies , which measures the relationship between two datasets, is an essential variable for a trader. How your positions move in relation to other positions is crucial to understanding and managing risk. Correlation in trading means how...| QuantifiedStrategies.com
Investing and trading for the long term, even in the most promising assets, invariably involves enduring periods of significant price declines, known as drawdowns. A drawdown is defined as the price decrease from a peak to a trough. As Charlie...| QuantifiedStrategies.com
Can a single trading rule really beat the market? It sounds too simple to be true, but our backtests suggest otherwise. In this article, we explore whether one straightforward rule can outperform buy-and-hold investing, both in stocks and in crypto....| QuantifiedStrategies.com
Can a large language model like ChatGPT predict stock price movements by analyzing news headlines? That’s the question tackled by researchers Alejandro Lopez-Lira and Yuehua Tang in their recent paper, “Can ChatGPT Forecast Stock Price Movements?” The results are surprising...| QuantifiedStrategies.com
The traditional 60/40 portfolio, 60% stocks and 40% bonds, has been the cornerstone of investment advice for decades. But what if we flipped conventional wisdom on its head? Thomas Carlson’s “Defense First” strategy, as analyzed by Allocate Smartly, presents a...| QuantifiedStrategies.com
The digital economy is maturing, and both the gambling and cryptocurrency industries are attracting investors due to the promises of high returns. The crypto casino industry is a niche that intersects these two spaces and has grown fast in the...| QuantifiedStrategies.com
Do you sometimes wonder what are the historical returns for stocks, bonds, gold, real estate, and cash? Which asset class has performed the best over the last century? We are wondering, and we thus decided to compile all the data...| QuantifiedStrategies.com
Investors love certainty, but markets rarely offer it. Still, some frameworks help us think more clearly about what drives returns—especially over the long term. One of the most intuitive was developed by none other than John Bogle, the founder of...| QuantifiedStrategies.com
Momentum trading strategies are the practice of buying and selling assets according to the recent strength of price trends. Traders who use the strategy aim to buy securities that have been showing an upward price trend and short-sell securities that...| QuantifiedStrategies.com
Bitcoin is a volatile beast. It doesn’t behave like stocks, bonds, or even gold. It trends when it wants to — and when it does, it often does so aggressively. That’s exactly why trend-following strategies can work well with crypto....| QuantifiedStrategies.com
Maximizing trading payouts requires a strategic approach that goes beyond simply picking winning trades. To get better trading results, you must first understand where your payouts come from. It’s about managing the risk and building a system that can deliver...| QuantifiedStrategies.com
Today we are presenting three free mean reversion strategies. They were partially published on this website a few years back, and today we make some minor adjustments and present their performance on different ETFs. Furthermore, we discuss why mean reversion...| QuantifiedStrategies.com
In May 2015, Micheal A. Gayed published a paper called Lumber: Worth Its Weight in Gold Offense and Defense in Active Portfolio Management (free download at SSRN). We used that paper to make a profitable lumber/gold ratio trading strategy for...| QuantifiedStrategies.com
Jack Bogle’s famous advice was to avoid searching for individual stocks, sectors, or markets that may perform better and simply invest in the entire market. This means using index funds to build a diversified portfolio. The Bogleheads 3 Fund Portfolio...| QuantifiedStrategies.com
Sometimes, trading smart means using a tool that shows you where the power dynamics in the market lie so you can play along with the big boys, and that’s where the Balance of Power indicator comes in. What do you...| QuantifiedStrategies.com
In finance, people often compare trading to gambling, and for good reason. While they might seem very different at first glance, both involve making decisions under uncertainty and taking risks in the hope of a reward. The tools and goals...| QuantifiedStrategies.com
Who is the best investor: Jim Simons or Warren Buffett? Jim Simons died in 2024, and Buffett retires at the end of 2025, aged 95. Thus, it might be relevant to ask: Jim Simons vs. Warren Buffett: Who is the...| QuantifiedStrategies.com
For years, anyone in finance worth their salt could tell you a fundamental truth about stock market patterns: at very short horizons, like one month, stock returns tend to reverse. That meant last month’s losers often became this month’s winners,...| QuantifiedStrategies.com
Why do intraday losers pop in the final 30 minutes of the trading session? This article shows you the abnormal returns obtained from buying intraday losers and what might be the reason for this anomaly. Key Takeaways What Is the...| QuantifiedStrategies.com
Most traders blame bad luck or market manipulation for their losses. The real culprit sits between their ears. Your brain evolved to keep you alive, not to make money in financial markets. The same mental shortcuts that helped humans survive...| QuantifiedStrategies.com
Day trading in fast-moving markets demands sharp decision-making, rigorous risk control, and a reliable edge. Proprietary (“prop”) trading firms offer capital, technology, and risk frameworks designed to empower skilled day traders. But success with a prop firm requires more than...| QuantifiedStrategies.com
The 4th of July (Independence Day) is one of the federal holidays in the US. How does it affect the US financial markets? The US financial markets do not open on the 4th of July, being a federal holiday to...| QuantifiedStrategies.com
Overnight gaps are a common occurrence in financial markets, driven by news and sentiment shifts outside regular trading hours. But how often do these gaps reverse during the same trading day? What is a gap? In this article, we define...| QuantifiedStrategies.com
At Quantified Strategies, we focus on strategies that are simple, practical, and backed by data. In this post, we’ll walk you through three long-term trading strategies that aim to reduce drawdowns, ride bull markets, and potentially outperform buy-and-hold with less...| QuantifiedStrategies.com
Thinking about investing in game development companies? You’re certainly not alone. With gaming growing right across the globe, more and more people are considering this industry when looking for places to put their money. It can feel tricky to know...| QuantifiedStrategies.com
For swing traders, oscillators are not just valuable tools for market analysis but also a way to track the individual price swings they intend to trade, and which oscillator does it better than one that combines stochastic with RSI —...| QuantifiedStrategies.com
Many trading indicators are available to traders. One of the indicators used in the stock market is the DeMarker indicator, named after Thomas DeMark, a prominent technical analyst. This indicator is a part of a trading system that incorporates bollinger...| QuantifiedStrategies.com
Investing in individual stocks can be exciting and risky. One of the biggest concerns for investors is the possibility that a single stock could significantly drag down their entire portfolio. But how likely is that to happen? And what can...| QuantifiedStrategies.com
Artificial intelligence continues to disrupt traditional investing, and one of the more intriguing applications is using large language models (LLMs) to analyze market sentiment. A recent study titled “Does Sentiment Help in Asset Pricing?” explores exactly that. Can we make...| QuantifiedStrategies.com
Scrolling through crypto Twitter again, wondering why your ETH position tanked while some random influencer claims they “called it”? Don’t worry—you’re definitely not the first person to get burned chasing hype instead of facts. Here’s the deal—Ethereum’s real price drivers...| QuantifiedStrategies.com
Your strategy looks strong, the metrics are impressive, and the equity is sloping nicely upward. What is not to like? But think twice – here’s the uncomfortable truth: your backtest might still be worthless. Luck and randomness might fool you...| QuantifiedStrategies.com
How likely is it that retail investors underperform the market? Sadly, the answer is very likely, almost a certainty. Emotional trading, lack of diversification, poor stock picking, and taxes all work against the average investor. But there’s good news: with...| QuantifiedStrategies.com
A recent academic paper titled “An Information Factor: What Are Skilled Investors Buying and Selling?” introduces a fascinating, evidence-backed trading strategy that builds on a deceptively simple premise: Follow the money — but not just any money. Follow the informed...| QuantifiedStrategies.com
Imagine investing your hard-earned money in the stock market, waiting a full decade, and seeing little to no growth, or even a loss. That’s the dreaded “lost decade” for the S&P 500, a period where the market barely budges, leaving...| QuantifiedStrategies.com
Investing in cryptocurrency is a proven effective way of making a profit in the modern world, and already 28% of American adults have owned at least one type of digital asset during their lifetime with many more suggesting they have...| QuantifiedStrategies.com
The MACD-histogram trading strategy is a mean-reversion system that identifies momentum changes and reversal points in the stock market. The strategy has generated 6669 trades on a portfolio of 77 ETFs, with long positions better than short positions. Let’s jump...| QuantifiedStrategies.com
Perhaps unsurprisingly, crypto trading is the offspring of crypto and trading. Trading has its nuances, crypto platforms have theirs, and by analyzing and recognizing each, you can better position yourself on the market. Attracting the wrong crowd only wastes your...| QuantifiedStrategies.com
What happens after the stock market drops sharply? Do stocks usually bounce back—or keep falling? This article explores how often the S&P 500 recovers after a big one-day drop of 2% or more. We examine the win rate and average...| QuantifiedStrategies.com
Dividend stocks have long been a favored choice for investors seeking steady income and potential stability, particularly within the S&P 500, a benchmark index of 500 leading U.S. companies. With approximately 80% of S&P 500 companies paying dividends as of...| QuantifiedStrategies.com
A carry trade strategy involves borrowing at a low-interest rate currency and converting the borrowed amount into another currency with a higher interest rate to invest in an asset that provides a higher rate of return. If you are active...| QuantifiedStrategies.com
The S&P 500 tracks 500 leading U.S. companies, making it a reliable gauge of market health. Whether you’re a day trader, long-term investor, or just curious about market behavior, understanding the likelihood of a positive day can shape your strategy....| QuantifiedStrategies.com
Want to outsmart the stock market? An insider portfolio, built on the trades of company executives and directors, might give you an edge. Can an insider| QuantifiedStrategies.com
Download 2 backtested strategies| Quantified Strategies
What is the best swing trading strategy? Is swing trading still profitable with positive returns? We have summarized 10 free swing trading strategies that| Quantified Strategies
Most traders test their trading ideas on all their available data and conclude "yes or no" to go live with the strategy. But it's a major problem with this| Quantified Strategies
Monte Carlo simulation in trading and investing is a tool frequently used in blogs and backtests. Can Monte Carlo backtesting be used to measure risk and| Quantified Strategies
Is a higher sharpe Ratio better?| Quantified Strategies
Seeking to invest smartly in the markets? Backtesting is your first step — a method to trial trading strategies with past market data before risking actual| Quantified Strategies
You can develop and create profitable short-selling strategies and systems, but you can't expect to find many; they normally trade infrequently. This article| Quantified Strategies
The Turnaround Tuesday Trading Strategy| Quantified Strategies
Hang Seng Index trading involves buying and selling stocks in major Hong Kong companies. This article will guide you through essential strategies, trading| QuantifiedStrategies.com
The Internal Bar Strength indicator (IBS) has worked remarkably well for over two decades. We can only guess why, but the stock market has been highly| Quantified Strategies
Curve fitting is when a strategy or edge is not fit to market behavior, but market noise, leading to failure in live trading. Curve fitting (overfitting) is| Quantified Strategies
Struggling to keep your emotions in check while trading? Effective emotional control in trading is crucial for making rational decisions and preventing costly| Quantified Strategies
Successful trading hinges on a disciplined mindset, which is the foundation of effective trading psychology. Without this discipline mindset foundation of| Quantified Strategies
Why is continuous learning in trading essential? In this evolving market, traders must constantly update their knowledge and techniques. Staying competitive| Quantified Strategies
This article explains what a trading journal is, why it's an essential tool for traders, how to create one, what to record, and how often to review your| Quantified Strategies
Want to improve your trading results? Being goal oriented in trading can make the difference. This article shows how setting and pursuing specific trading| Quantified Strategies
We have yet to see much quantified backtest of candlestick patterns. Practically all candlestick "analysis" is based on anecdotal evidence and some random| Quantified Strategies
George Washington’s Day/Presidents’ Day is a federal holiday in the US. But does it affect the US stock market?| Quantified Strategies
You might wonder which time frame to watch when day trading. Instinctively, you might believe you need intraday bars, i.e., 5-minute bars, 60-minute bars,| Quantified Strategies
Trading bias or behavioral mistakes, you better have an understanding of the most common ones. When your money is at risk, you easily get fooled by your| Quantified Strategies
Martin Luther King Jr. Day is one of the federal holidays observed in the US. How does it affect trading on the US stock markets?| Quantified Strategies
Trading offers a very scalable career, while investing offers lower risk and less scale. Short-term trading requires excellence, while long-term investing| Quantified Strategies
Is the stock market a zero-sum game? You frequently hear media refer to games and markets as zero-sum games.| Quantified Strategies
Is Interactive Brokers safe? I have been a customer at Interactive Brokers (IB) for the last 11 years and on and off for many years before that. I love IB as| Quantified Strategies
Welcome to our Amibroker course, where you'll learn to master the powerful tools of trading strategies and backtesting analysis for better trading performance.| Quantified Strategies
When it comes to mastering the markets, having a strong foundation of knowledge is key. Over the years, I’ve come across and read a variety of trading| Quantified Strategies
"Gurus" in the media rarely quantify their predictions. Why? Because they are almost never correct. No proof is given on the prediction's reliability and| Quantified Strategies
Which technical indicators will give you an edge in the markets? Traders look to these tools for signals about where prices might be headed. This guide| Quantified Strategies
Trading strategies | Quantified Strategies
Candlesticks are popular. They are very useful for visual displays, but our previous backtests indicate candlesticks might be useful to make trading| Quantified Strategies
The lower highs and lower lows pattern signals a downtrend. Is this likely to continue or reverse? What is the meaning of a lower highs and lower lows pattern?| Quantified Strategies
Welcome to Encyclopedia 75 candlestick pattern - historical backtests and performance!| Quantified Strategies
What happens to stocks when bonds go up (what happens to stocks when interest rates go down)? Any stock investor or trader should have a basic understanding| Quantified Strategies
Which time frame is best in trading? We believe the best time frame in trading is daily bars. Every time frame has its pros and cons, but we recommend being| Quantified Strategies
Trading Strategy Optimization, is it good for trading? Are optimizers error maximizes? Do small input errors result in large output errors? Stay tuned, and| Quantified Strategies
For short-term traders, the right trading tools are ones that help them quickly spot shifts in the momentum and price swings — this is where the swing index| Quantified Strategies
I just found your website. Amazing how much valuable information you have there! As an algo trader myself there is a plethora of resources and| QuantifiedStrategies.com
https://youtu.be/bA2iRHumRX0?si=wwe4UhvfJPiMpS6p| Quantified Strategies
Trading and investing smart means using the right tools to choose the right stocks to trade or invest in — one tool that helps you find high-momentum stocks| Quantified Strategies
The financial markets seem to move in a highly chaotic way, but beneath that apparent chaos lies some form of fractal patterns that can be exploited with the| Quantified Strategies
Navigating the ever-changing world of financial markets can be a tough task, even for experienced traders, which is why tools like the Market profile can be a| Quantified Strategies
There are many types of indicators and tools traders can use to analyze the market, and one good one for comparing different markets is the percentage price| Quantified Strategies
There are many tools traders use to navigate the ever-changing landscape of financial markets, but in markets with real volume data, no one does it better| Quantified Strategies
Traders are always seeking new indicators to gain more insight into market trends and price movements, and this has led to the creation of the rainbow moving| Quantified Strategies
Navigating the randomness of financial markets can be daunting, even for seasoned traders, but there are technical analysis tools and indicators that can help| Quantified Strategies
In the fast-moving world of financial markets, traders are always for that one indicator that can tell them all they want to know about market movements, and| Quantified Strategies
Sometimes, you may want to compare the volatility in different financial securities but that may not be possible with absolute-value-based volatility| Quantified Strategies
