Evidence-Based Trading Strategies
Our goal is to identify technical indicators and algorithmic trading rules that work, according to research and our own analysis and empirical testing.
We mine the academic finance literature
and books on technical analysis
for trading ideas, then put these ideas to the test.
Can technical analysis or technical indicators actually help in timing
the stock market and predicting stock price movements? We explore the performance of several proposed stock trading systems.
Quickly review the technical status of the 100 large-cap stocks making up the S&P-100. Compare the current price to 50- and 200-day moving averages.
See which stocks are overbought and oversold
. We rank stocks on two quantitative scores, one based on traditional
technical analysis, and the second based on our own predictive modeling. Full reports provided for individual stocks.
Academic research shows the importance of 52-week highs in momentum trading. See which stocks are at or near 52-week highs or 52-week lows, as well as where the current stock price is relative to the 52-week trading range.
This report is an excellent source for trading ideas for momentum and contrarian trading strategies.
A stock's beta value summarizes how the stock covaries with an overall market index. They can be used as input to portfolio construction
to achieve desired levels of exposure to the overall market.
What is the state of evidence regarding whether stock prices follow a random walk, and how should one think about active stock trading if the market if price changes are nearly random?
This article summarizes our broad conclusions about stock price predictability and effective trading.