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Triple Leveraged ETF Trading Strategy (44% Annual Returns)

The strategy takes equal positions in TQQQ and TMF and uses a crash filter to mitigate drawdowns.

👉 Read Here

Gold As An Inflation Hedge

We show you a day trading strategy based on the opening price, complete with trading rules.

👉 Read Here

MACD for NIFTY

Does MACD work for Indian stocks? A MACD optimization was done for all 50 stocks in the Indian NIFTY index.

👉 Read Here

Investors Forget the Pain — and Pay for It

A fascinating new paper, Investor Memory and Stock Returns, introduces the concept of Investor Memory Bias (MB) — the tendency for investors to forget negative returns over time.

Here’s the kicker:
📉 Stocks with high memory bias (where investors “forget” more losses) earn significantly lower future returns.
In fact, the high-minus-low MB portfolio underperforms by about 0.9% per month — even after controlling for 15 well-known risk factors.

The authors model investor forgetfulness as a power-law decay — meaning the longer ago a loss occurred, the more likely it is forgotten. This “selective amnesia” leads to mispricing and overvaluation.

The effect is strongest when:

  • Sentiment is high 🧠

  • Closing prices (not opening) drive perception

  • Arbitrage constraints are tight

In short, investors who ignore past pain set themselves up for lower returns — a behavioral bias now quantified at scale.

🧠 Quant Mindset

“Volatility Is Not Risk”

Don’t confuse volatility with danger.
True risk = losing your edge, not having red days.

🔹 A system can be volatile but still robust
🔹 Avoid judging risk by emotion — use stats

✅ Tip: Use rolling Sharpe or MAR ratios to monitor live system health.

Make Money On Stocks During The Lunch Break

Can you make money during the lunch break?

👉 Read Here

😵 Behavioral Bias of the Week

Survivorship Bias In Trading

Survivorship bias in trading and backtesting is about the things we don’t see or, to a certain degree, ignore. We tend to see the winners and not the losers. Unfortunately, this is very typical in trading and backtesting.

Example:

  • Backtesting only the stocks that exist today, ignoring those that went bankrupt or delisted.

👉 Read More Here

Backtest of the Week

Mean reversion strategies for stocks have been written off many times*.

However, the simple 2-day RSI strategy, first published by Larry Connors in 2008, is still working well.

Trading rules:

  • The 2-day RSI must be below 10; and

  • The close must be above the 200-day moving average (to only trade in a bull market).

  • Sell when the two-day RSI ends above 90.

*Mean reversion has worked well since the introduction of S&P 500 futures trading in 1982.

🔍 Strategy: RSI(2) - Nasdaq/QQQ

📊 Results:

  • 📈 Avg gain per trade: 1%

  • ✅ Win Rate: 73%

  • ⏱️ Exposure: 30%

  • ⚠️ Max Drawdown: -30%

This is the equity curve for 2x leverage (QLD):

📏 Quant Concept of the Week

Kelly Criterion: Bet Size That Builds Wealth

The Kelly formula helps you size trades for maximum long-term growth, based on your edge and risk.

🎯 Formula (simplified):
Kelly % = Win Rate – (1 – Win Rate) / Risk-Reward Ratio

✅ Pros:

  • Maximizes geometric returns

  • Encourages discipline and capital efficiency

⚠️ Caution:

  • Full Kelly can be aggressive — many quants use Half-Kelly for stability

  • Sensitive to incorrect inputs — garbage in, ruin out

💡 Use your backtest stats (win rate & payoff ratio) to calculate it and fine-tune your position sizing like a pro.

  • 📺 Why Day Traders Fail 👉 View Here

  • 📺 What’s the Chance the Market Closes Higher After a Gap Up? 👉 View Here

  • 📺 The Best Stop Loss Strategy 👉 View Here

  • 📺 What's The Best Month For Stocks? 👉 View Here

  • 📺 Short Term Momentum Strategy 👉 View Here

  • 📺 What's the Chance the Market Closes Lower After a Gap Down? 👉 View Here

  • 📺 Top Five Most Effective Oscillators 👉 View Here

  • 📺 Why Passive Investing Crushes Stock Picking 👉 View Here

  • 📺 Do Moving Average Crossovers Really Predict Price Direction? 👉 View Here

🧠 Quote of the Week

NASDAQ’s Year-End Rally: One of the Most Reliable Seasonal Trends in History

Every Time Silver Hit a 9-Week Streak — The Full Historical Backtest

Compounding: The Real Secret to Building Wealth

Tech’s Moment of Truth

The Trend Is Still Your Friend

S&P 500 Enters Its Historically Strongest Season

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