Academic-backed equity trading strategies with detailed implementation guides. From day trading setups to position trading systems.
Buy undervalued stocks with high book-to-market ratios. One of the most documented anomalies in finance.
Buy recent winners, sell recent losers. Exploits the tendency of stocks to continue their recent performance trajectory.
Buy low-volatility stocks, avoid high-volatility stocks. Lower risk has historically meant higher risk-adjusted returns.
Use option implied volatility changes to predict stock returns. Rising call IV signals good news; rising put IV signals bad news.
Trade post-earnings announcement drift using Standardized Unexpected Earnings (SUE). Buy earnings beats, short earnings misses.
Combine multiple factors like value and momentum for diversified risk premiums. Negatively correlated factors provide powerful diversification.
Use regression residuals instead of raw returns for purer momentum signal. Removes factor exposure for reduced crash risk.
Trade mean reversion between correlated stock pairs. Dollar-neutral strategy that profits from spread convergence.
Generalize pairs trading to N correlated stocks. Short outperformers, buy underperformers within a sector or industry cluster.
Use weighted regression to remove factor exposures and trade purer residuals. Volatility-weighted estimation for cleaner signals.
Buy at channel floor, sell at ceiling. Trade price ranges using T-period highs and lows as support and resistance.