Dow Theory, Real Estate, Financials, And Inside Days
First a reminder: since we started writing in 2012 we have published plenty of free trading ideas/strategies (more than 100!). We have made them all accessible in “plain English” and Amibroker code (and many have Tradestation/easy Langauge code). More info here:
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Over the last week we have published a few articles:
Dow Theory Strategy
The Dow Theory strategy is a technical analysis model that states the U.S. market is in an upward trend if one of its averages (say, the Dow Jones Industrial Average) advances above a previous important high and is accompanied or followed by a similar advance in the other average (Dow Jones Transportation Average) within a suitable period of time.
We did some backtests:
Real Estate Sector Trading Strategy
The real estate industry sector, previously stuffed inside the Financials sector, was elevated to a market sector level in 2016, making it the 11th sector in the S&P 500 index.
We made two backtests, one of them a seasonality:
Industrials Sector Trading Strategy
As the name implies, this sector covers different industries that make use of heavy equipment and involves high-level engineering.
Unfortunately, in the industrials sector, it is a lot harder to find profitable trading strategies than the broader indices like S&P 500 or Nasdaq 100.
Financial Services Sector Trading Strategy
With the tight regulations that followed the 2008/2009 financial crisis, this sector has been stable with steady growth. The sector is great for trading due to the high volatility.
This is a backtest in XLF based on one of our monthly trading edges:
Inside Day Trading Strategy
An inside day is defined by two bars where the last bar has all price action below yesterday’s high and above yesterday’s low. In other words, today’s price action and trading are completely inside yesterday’s. Is an inside day a good trading signal?
When Both Thursdays And Fridays Are Down In SPY
Back in 2013, we published a backtest that looked at the performance of the S&P 500 (SPY) when both Thursday and Friday were down days. We recently updated the strategy:
