Three Black Crows Candlestick Pattern

The three black crows Japanese candlestick pattern works in the stock market but occurs too infrequently in the forex and crypto markets to produce statistically significant results. A trader can expect to gain $6.20 on average per $100 risked using an optimal risk-reward ratio. But what would you think if I told you that there’s a better …

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Two Crows Candlestick Pattern

The two crows Japanese candlestick pattern does not work in the stock market, and it occurs too infrequently in the forex and crypto markets to produce statistically significant results. A trader can expect to lose $16.50 on average per $100 risked using a 1:5 risk-reward ratio optimized by profit per bar. But what if I …

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Crypto Trading Strategy (Price Shear)

Learn how to backtest a high-frequency price shear mean reversion algorithmic trading system on multiple assets with multiple timeframes using Python and Pandas. In this video, we’ll download minutely data from Kaggle, resample the data into 5 minute and daily bars, and analyze the data for a price shear. What Is a Price Shear? A …

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Timing the Markets with ETF Fund Flows

Due to poor investment timing, the average stock investor trails the market’s performance. The psychological forces of missing out (FOMO) are strong but lead to weak investment returns. An intelligent investor can utilize ETF fund flows to help time the market. I’ve been busy lately, and it’s hard to believe it’s been almost two months …

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Stop Loss: Explained & The Best Strategy

A stop-loss order protects profit or limits risk on an investor’s open position by exiting at a predetermined price. Placing an order to sell a long stock position if the price drops 5% below the purchase price is an example of a stop-loss order. In this post, we will dig into what a stop loss …

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Sector Momentum: Explained & Backtested

Sector momentum is a sector rotation strategy to boost performance by ranking sectors according to their momentum, buying top performers, and selling laggards. In this post, I describe sector momentum and why it works and backtest an algorithmic sector rotational strategy in Backtrader. The goal is not to provide an exhaustive, statistically significant analysis of …

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