Elite Guide to Backtesting Trading & Investing Strategies
Experienced investors backtest their trading strategies to optimize their portfolios. Backtesting is a critical step that enables traders to assess the potential viability of a trading strategy by applying it to historical data.
How to Short-Sell an Inverse Cup and Handle’s 82% Reliability
Two decades of trading research indicate that the inverse cup and handle pattern has an 82% success rate and average price drops of 17%. It is an ideal pattern for short-selling.
Why Traders Should Avoid Using Bull Pennant Chart Patterns
Traders must be cautious when using bull pennant chart patterns. Published research reveals a low success rate of 54% and a meager price increase of 7%.
How to Trade a Falling Wedge: A 74% Chance of a...
According to published research, the falling wedge pattern has a 74% success rate in bull markets with an average potential profit of +38%.
55% Of Bull Flags Fail. Trade a High Tight Flag’s 85%...
According to an analysis of 1,028 trades, most bull flags have a failure rate of 55%. The high-tight bull flag has a success rate of 85% and is the only flag pattern you should trade.
How to Trade the Rising Wedge Pattern’s 81% Success Rate
According to multi-year testing, the rising wedge pattern has a solid 81% success rate in bull markets with an average potential profit of +38%. The ascending wedge is a reliable, accurate pattern, and if used correctly, gives you an edge in trading.
Money Flow Index Indicator Best Settings & Reliability Tested
The Money Flow Index (14), on a daily chart, outperformed the S&P 500 stocks over 26 years. Its total return was 1,690%, compared to a buy-and-hold strategy profit of 881%.
New Data Shows Traders Should Avoid Bear Flag Patterns!
Be careful when trading bearish flags. According to published research, the bear flag pattern has a low success rate of 45%. This means you are flipping a coin when trading this pattern, as the odds are not in your favor. The high-tight bear flag is the only flag pattern you should trade.
Optimal Keltner Channel Trading Based on Backtested Data
My reliability testing of Keltner Channels on 1,800 years of DJIA data suggests it is not a good indicator. However, it is profitable with the optimal settings.
How to Read Stock Charts Like a Boss: Beginners Guide +pdf
To read stock charts you need to use stock charting software, select your chart type, configure your timeframe, determine price direction using trendlines and use indicators to estimate future prices.
Top 5 Candle Chart Pattern Recognition Software for Traders
After rigorous testing, TrendSpider, TradingView, FinViz, Tickeron, and MetaStock are my recommended chart pattern recognition software.
Our Data Proves Why Heikin-Ashi Charts Are Best for Traders
I backtested 360 years of data on the 30 most important US stocks, and our findings prove that Heikin-Ashi chart strategies outperform 66% of equities vs. a buy-and-hold strategy.
Is the Shooting Star Candle Worth Trading? Our Data Says Yes!
Based on our 568 years of backtested data, the Shooting Star candle is profitable. It has a 57.1% upside success rate and an average winning trade of 3.6%. Each trade made using a shooting star nets an average of 0.56% profit.
Analyst Proves Trading Fractal Patterns is Profitable!
Based on 2,510 tested trades on 80 years of exchange data, I can confirm trading fractal patterns is profitable, with an average reward-to-risk ratio rate of 1.5 across all timescales.
6 Reliable & Profitable Harmonic Patterns Based on Data
Do Harmonic chart patterns actually work in trading and technical analysis? The answer is yes, but not all patterns are effective under scientific testing. The difference is in the data.
How Does The Cypher Pattern Work & Is It Profitable?
In technical analysis, the cypher pattern indicates potential price reversal zones (PRZ) with four Fibonacci swings labeled X-A, A-B, B-C, and C-D. Our testing shows it is profitable in the right conditions.
Shark Pattern Explained. I Test Its Trading Profitability!
The Shark pattern has a unique structure that follows predefined Fibonacci ratios, which indicate potential reversal zones. This pattern guides traders on entry and exit points using historical price patterns.
How to Trade the McClellan Oscillator Effectively
The McClellan Oscillator is a technical analysis tool designed to assess the market breadth of the New York Stock Exchange (NYSE). It is renowned for its effectiveness in revealing the underlying strength or weakness of the market by comparing the number of advancing to declining stocks.
KST Indicator Best Settings & Strategy Tested on 2746 Trades
My research on 2,746 test trades spanning 10 years confirms that using the KST indicator's default settings on daily and weekly charts provides profitable and reliable signals for traders.
I Backtested the Crab Pattern! Is It Reliable? No!
Harmonic patterns, including the Crab Pattern, are based on precise Fibonacci retracement and extension levels. Traders who master the Crab Pattern can sometimes spot trend reversals before they happen, allowing them to enter or exit positions at optimal times.