Ed Seykota is a trend following trader that uses reactive technical analyses through quantified trading signals to capture large profits during trending price action. He has parameters for proper position sizing, volatility filters, and optimizes his strategy for large wins and small losses. Ed Seykota Trading Rules “In order of importance to me are: 1) […]
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What is the Wyckoff Theory? The Richard Wyckoff Theory of accumulation and distribution focuses on supply and demand for a stock, the cause and effect, and the law of effort for a stock. It tries to measure and quantify whether a stock chart is being bought and held to create an uptrend or systematically sold
Is there a simple moving average monthly trend trading strategy that crushes buy and hold investing? Buy and hold investing on the S&P 500 index with an exchange traded fund or a low cost mutual fund is a top performing system that few money managers and traders can beat over ten-year periods. This is a
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Is there a simple moving average trading strategy that crushes buy and hold investing? If so, what moving average and time frame combination would accomplish this going back at least 20 years? The 200-day simple moving average as an end of month signal on the SPY ETF accomplishes this feat. Buy and hold investing on
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Is there a simple moving average monthly trading strategy that crushes buy and hold investing? Buy and hold investing on the S&P 500 index with an exchange traded fund or a low cost mutual fund is a top performing system that few money managers and traders can beat. This is a good core strategy for
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In trading and investing post earnings announcement drift (or PEAD) is the theory that a stock’s price action tends to trend in the same direction as an earnings surprise causes it to go. This effect usually starts with a gap in the direction that it will go for the next few weeks or even months
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Moving averages are technical trading indicators for capturing trends. This post shows the backtesting data and system equity curve versus buy and hold using TrendSpider.com. This is the backtest based on buying $QQQ when the 5 day EMA crosses and closes over the 20 day EMA and then selling when the 5 day EMA closes
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Trend following is the process of trading in the direction of the markets price action and staying with the trend until it ends. A trend follower must have a quantified winning process for entering when there is a signal and then either exiting for a small loss when a trend fails to be established or
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Moving averages are the best indicators for the direction of a trend because of their power and simplicity to smooth out price direction in trend trading. They create lines on your charts to filter out the daily trading ranges and show the true direction a market is going in for a specific time frame. When
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“Trend followers use reactive technical analysis. Instead of trying to predict a market direction, their strategy is to react to the market’s movements whenever they occur. This enables them to focus on the market’s actual moves and not get emotionally involved with trying to predict direction or duration.” -Michael Covel Trading a trend in price
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