Category: Backtests
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Is Buying a Stock at its All-Time High More Profitable
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Read more: Is Buying a Stock at its All-Time High More ProfitableBuying a stock at its all-time high can feel counterintuitive. After all, you’re paying the highest price the market has ever seen. But that moment is also uniquely compelling. There’s no overhead resistance, momentum is strong, and every existing shareholder is sitting on a profit (even if just barely, when the breakout is small). These…
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Do candlestick patterns work in Forex?
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Read more: Do candlestick patterns work in Forex?In today’s post, let’s explore the topic: Do candlestick patterns work in Forex? Before we begin, let’s do a quick introduction to candlestick patterns. I believe most readers of a trading blog should understand and be able to read a candlestick chart, so I will not go into the basics. In the rare event that…
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A backtest of the Naïve System in Mean Reversion Trading Systems by Howard Bandy
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Read more: A backtest of the Naïve System in Mean Reversion Trading Systems by Howard BandyThis system is taken from Howard Bandy’s Mean Reversion Trading Systems book. It’s a simple system that he presented in one of the earlier chapters (I believe it’s Chapter 3). Note that I have likely altered the code a bit; I’m unable to verify as I do not have the book with me now. This…