These are the 21 most popular trading strategies that every serious trader should learn to succeed

 These are the 21 most popular trading strategies that every serious trader should learn to succeed


Price-Momentum

Price-momentum strategies are based on the purchase of the most-performing stocks and the sale of the least-performing stocks according to a predetermined criterion. You can choose to use a cumulative return, mean or risk-adjusted performance criterion. You can either open long-only positions in the top 10% most-performing stocks or you can go long-short where you only buy the top 10% and short the 10% worst-performing stocks.


Earnings-Momentum

The earnings-momentum strategy is the same as the price-momentum one above. It involves buying/selling top/bottom 10% stocks based on their performance. The performance criteria is what is different. The performance criteria for the price-momentum strategies is return. In the earnings-momentum strategies, it is earnings.


Book-To-Price Value

The strategy also involves buying top winners and selling bottom losers. This is similar to the earnings-momentum or price-momentum strategies. The only difference is that this performance selection criteria is based on the book-to-price ratio (B/P). This strategy involves buying the top 10% stocks that have the highest B/P ratios and shorting the 10% below.


Low-Volatility Anomaly

The low-volatility anomaly trading strategy relies on the observation that the future returns of low-return-volatility portfolios outperform the returns of high-return-volatility portfolios. This is counterintuitive because higher risk means higher returns, but low-volatility anomaly strategies shows very good returns.


Implied Volatility

Based on an observation about the implied volatility of stock options, the implied volatility strategy was developed. This observation shows that stocks with higher call options implied volatility over the past month tend to have higher future return. The opposite is also true. Stocks with higher put options implied volatility over the past month tend to have lower future return. These criteria allow traders to open long positions in stocks in the top 10% and short positions within the lower 10%.


Multifactor Portfolio

Multifactor strategies involve buying and selling short stock based on multiple factors. These factors could include volatility, momentum, value, and other variables. Traders can therefore combine uncorrelated factors to add value to their portfolio.


Pairs Trading Strategies

Pairs trading is an example of a mean reversion strategy. Pairs trading is based on the identification of stocks that have high correlation in historical performance. Next, the strategy will monitor the changes in correlation between the stocks over time. If mispricing is detected, the trader will sell short the stock that is too expensive and then buy the stock that is less expensive.


One Moving Average

One of the most basic trading strategies is the single moving average. It's based on an asset's price (stock, futures contract or currency pair). Crossing up or down a moving Average. These conditions are very basic. The trader can open a long position if the price crosses above a moving average. The trader can open a short position if the price crosses below a moving average. This strategy can be used in a single or multi-asset setting to run either a short-only, long-short, or both.


Crossover of Moving Averages

Another popular trading strategy is the moving averages crossover. This strategy relies on two moving Averages: a fast (short) and slow (long). The trading logic for the moving average crossover strategy is very similar to that of the single moving average strategy. The trader seeks a crossover of the fast and slow moving averages, rather than just looking at the market price and one moving average.


Learn more about Moving Averages, MA trading strategies and how to use them to analyze market trends in the article How to Use Moving Average. A 10 Mega Profit Sit and Go Strategy


Comments

Post a Comment

Popular posts from this blog

Pendirian Menghindari Jebakan Kurangnya Informasi Klien

Banyak pemilik bisnis yang sibuk dengan pekerjaan yang mereka lakukan yang tidak berkomunikasi dengan publik. Ada sedikit atau tidak ada representasi dalam domain name publik melalui berbagai bentuk press, tetapi tidak semua pemilik bisnis peduli dengan penyusunan rencana komunikasi yang efektif. Beberapa pemilik mungkin menggunakan bentuk media lain agar mereka memiliki rencana komunikasi yang efektif. Beberapa pada dasarnya memulai organisasi baru, sementara yang lain ingin memanfaatkan pertumbuhan eksponensial dalam bisnis mereka tanpa harus mengambil langkah hukum pendirian. Beberapa hanya diberi daftar nama yang mereka susun di kartu nama yang mereka bagikan kepada calon klien. Dalam kasus ini, hampir tidak ada cara untuk mengkomunikasikan pemikiran di depan masyarakat umum tanpa bergabung. Dalam artikel ini, salah satu poin terpenting adalah untuk memeriksa apa yang dibutuhkan site publik untuk bisnis Anda dan apa yang Anda butuhkan untuk mencapai tujuan Anda. Kebutuhan Site Publ
Read more

Cara mendapatkan substansi kasino poker on the internet palsu

Image
Makelar adalah seseorang yang memiliki fungsi crucial bagi peserta judi poker on the internet. Hanya karena agen telah melibatkan perusahaan jasa, perusahaan, pemasar dana, dan banyak lagi kewajiban profesional. Dengan adanya agensi dalam permainan judi on-line, para gamers dapat memainkan permainan on line casino dengan mudah. Namun harus anda pahami bahwa saat ini banyak sekali materi taruhan poker on the web yang bertebaran di online. Meskipun tidak semua konten di kasino website terkait dengan materi kasino poker on the web. Saat ini ada banyak sekali materi taruhan poker on-line yang kebetulan tidak bertanggung jawab atau dapat dianggap sebagai agen taruhan palsu. Untuk itu, sebelum bergabung dengan seorang profesional kasino on-line untuk merasakan poker on the internet, oleh karena itu Anda harus mempelajari apa saja ciri-ciri brokerage judi tiruan ini untuk mencegahnya. Cara Mengetahui Dealer Taruhan Poker On-line Buatan Karenanya, kami tentu telah menyiapkan dengan baik bebera
Read more

List of five-number lottery games

  Five-number Lottery Games Here is a list of American and Canadian lottery games in which five regular numbers are chosen from a larger pool.   The name, number field and frequency of drawing are included in the list.   All pick-5 games in Canada or the U.S. are drawn several times per week, usually nightly. Some lotteries also hold such drawings more frequently than once per day. A majority of U.S. Pick-5 games have a progressive Jackpot, even if they are drawn daily. Rarely, a single ticket can win cash prizes in excess $1 million.   Common top prize in pick-5 games that are not jackpot-related is $100,000.   You must match at least two or three numbers, not counting the "bonus ball", to be eligible for a winning ticket.   The prize payouts depend on the game and can either be fixed (with parimutuel exceptions), always parimutuel or feature a parimutuel Jackpot with fixed lower-tier rewards. With few exceptions all U.S. or Canadian games in which five regular numbers are d
Read more