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Statistics don’t care about opinions.
Larry Connors’ R3 Strategy (It Still Works)
The R3 strategy is a mean-reversion trading system, as described in Chapter 4 of Connors’ book, High Probability ETF Trading (2009).
We backtested it.
Copper/Gold Ratio Trading Strategy
The “Copper/Gold ratio” is simply the price of copper divided by the price of gold. The rationale: copper is a broadly used industrial metal (so its price is sensitive to economic activity), whereas gold is more of a safe-haven asset, sensitive to inflation, uncertainty, and interest rate dynamics.
We backtested it.
The MAR Ratio: The Risk-Adjusted Performance Metric for Traders and Investors
Named after the Managed Accounts Report newsletter, where it was introduced by Leon Rose in 1978, this robust metric measures risk-adjusted returns by comparing an investment’s compound annual growth rate (CAGR) to its maximum drawdown. Thus, it’s a pretty straightforward measure.
Is The Opening Price Correct?
When backtesting with OHLC quotes, can you trust the opening price?
Are Hated Stocks A Good Investment?
When analyzing a company, analysts typically conclude their reports with a recommendation, usually categorized as strong buy, buy, hold, sell, or strong sell.
Do sell recommendations perform better than buy recommendations?
Gator Oscillator Strategy
As with most oscillators, the Gator Oscillator is plotted in an indicator window below the price chart.
It consists of a dual histogram simultaneously plotted above and below the 0.0 centerline, with the bars above representing the absolute distance between the Alligator’s jaws (13-period SMMA) and teeth (8-period SMMA) and the bars below representing the absolute distance between teeth and lips (5-period SMMA).
We backtested it.
😵 Behavioral Bias of the Week
Optimism/Pessimism Bias
Your past and recent results heavily influence your trading. If you have done well, you feel great and optimistic and fall prey to the optimism bias. If you have performed poorly, you are pessimistic.
Of course, this rollercoaster influences your trading. Being pessimistic can even make you stop trading or tinker with your systems—at the exact wrong time.
Many have an “all or nothing” approach: if you fall short of your expectations, you see yourself as a failure.
Backtest of the Week
Trading rules (S&P 500): |
Buy at the close of October;
Sell at the close of November.
🔍 Strategy: November performance |
📊 Results: |
📈 Avg gain per trade: 1.75%
✅ Win Rate: 68%
⏱️ Exposure: 8.3%
⚠️ Max Drawdown: -16%
📺 RSI Trading Strategy That Actually Works 👉 View Here
📺 5 Proven Indicators For Short Term Trading 👉 View Here
📺 3 long-term strategies that work 👉 View Here
📺 Is Gold a Safe Haven Investment? 👉 View Here
📺 Profit Factor: How Pros Judge Trading Strategies 👉 View Here
📺 Can an insider portfolio beat the market? 👉 View Here
📺 What's the Probability of a Lost Decade in the S&P 500? 👉 View
📺 Is Gold a Safe Investment? Here’s What the Data Says 👉 View
🧠 Quote of the Week
FED Cuts At All Time Highs
JPM: "Today will be the fifth time that the #Fed cuts rates with the #SP500 at all-time highs. In all prior instances, the S&P 500 was higher a year later with an average return of 20%. The worst one-year return was a 15% gain, which occurred last year."
Cryptocurrency as an Investable Asset Class – 10 Lessons
Thanksgiving and Christmas Trading Strategies
Tech’s Moment of Truth
Smart money vs retail: will super tech earnings unlock it?
AI and a year-end peak are boosting retail tech optimism, but high consolidation hides a sharp split and bearish divergence.
· Tech's 20-day MA put/call ratio hit a 1-year low, signaling extreme complacency
· Rydex tech— #SentimenTrader (#@sentimentrader)
12:00 PM • Oct 21, 2025
AAII sentiment
Government Shutdowns - Bullish Or Bearish?
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