Summaries and key ideas, written by Stratmill's research agent, of the books, papers, articles and code our AI agents read. Each page links to its original.
110 documents
This forum post asks how to use pyramiding in a strategy that combines a higher-level long signal with lower-level entry and exit signals. The author wants to add long entries whenever the smaller-scale long condition occurs while the larger long condition…
This essay argues that systematic, rule-based investing may be especially useful in China’s equity market, which the author characterizes as unusually speculative and shaped by short-term trading, policy shifts, and weak alignment between some controlling…
The article reviews evidence that individual investors often buy after prices fall and sell after they rise, while more financially sophisticated groups may show more momentum-oriented trading. It discusses several possible explanations: investors’ beliefs…
This essay applies ideas from philosophy of science to judging trading strategies. It contrasts testable claims, which make predictions that evidence could disprove, with claims that cannot be meaningfully tested. For strategies whose edge is inferred from…
The note explains four combinations of price direction and trading volume: rising prices with lower or higher volume, and falling prices with lower or higher volume. It frames volume as evidence of trading activity and uses a used-car market analogy to…
This article presents five ways to manage exits from stock positions: set an initial price threshold before entry; raise the stop to break-even after a favorable move; trail it as the price advances; exit when price breaks a trend line or moving average; and…
The essay cautions against treating a single factor as a reliable cause of an investment outcome. It uses stock reactions to restructuring announcements to show that the same news can be welcomed in a bull market and ignored or sold in a weak market. It also…
This article introduces the KDJ stochastic oscillator, formed from the close’s position within a recent high-low range and smoothed into K and D lines, with J derived from them. It describes common interpretations: high and low readings as overbought or…
The document presents Benford’s law as a quantitative screening method for assessing whether company financial figures may have been manipulated. It explains that in many naturally occurring datasets, the first nonzero digit appears with a nonuniform…
This article argues that trading volume cannot be interpreted through a fixed rule that rising prices must come with rising volume. It recommends judging volume relative to the prior price and volume trend, market setting, and position within a move, with…
This brief VeighNa forum exchange discusses how to calculate indicators that need multiple days of history, such as 30-day and 60-day moving averages. One participant considers storing daily OHLCV data in a database or CSV file and loading it before the…
The article argues that traders can be misled by intuitive, familiar interpretations of price action and market narratives. Examples include buying a presumed leader after a technical pullback, expecting small caps to rise when large caps lead, or chasing a…
This glossary introduces twelve finance concepts spanning central-bank policy, corporate transactions, securities, valuation, and financial risk. It explains rediscounting and open-market operations as channels through which central banks influence liquidity…
The document defines swing trading as a holding period between day trading and longer-term trend trading, typically lasting several days to a few weeks. It presents the style as trading shorter oscillations in liquid stocks, especially when broad markets…
Fundamental analysis estimates a security’s intrinsic value by examining economic conditions, industry trends, company finances, and qualitative factors such as management. Analysts use public information to form a value estimate and compare it with the…
The document explains a high-frequency tactic called penny jumping through a limit-order-book example. A large visible bid may signal that an institutional buyer is willing to trade at a particular price. A faster trader can step one tick ahead of that bid,…
The document presents two chart-based trading setups. In the 1-2-3 method, price breaks a prior trend line, retraces, and turns back in the opposite direction; a qualifying retracement must meet a stated fraction of the first move. The proposed entry follows…
The article presents a stock grid method that divides a chosen price interval into a finite number of levels. As price falls, the trader divides remaining cash among lower grid levels; as price rises, remaining shares are divided among upper levels. It…
This essay presents a framework for improving investment judgment through varied mental models rather than relying on one familiar way of thinking. It recommends learning core ideas from several disciplines, using an investor-specific checklist, and applying…
The document contrasts applying for CXMT shares in a Chinese A-share IPO with trading a pre-listing perpetual contract on Hyperliquid. It outlines the stated eligibility requirements and estimated allotment odds for the IPO, then explains that the contract…
This note introduces the Easley, Kiefer, O’Hara, and Paperman (EKOP) model to explain how informed and uninformed trading can shape a stock’s bid-ask spread. It describes a discrete-day, continuous-within-day setting in which information events may be good…
The document proposes a research data model for representing a limited, conditional SEC exemption related to eligible trading venues and tokenized NMS stocks. It argues against reducing regulatory status to a single approval flag and instead recommends…
The document explains a portfolio construction approach that forecasts stock trading volume and uses the forecasts as a proxy for expected price impact. With trade size held fixed, lower volume implies a higher participation rate and greater expected impact,…
This guide explains how to connect Interactive Brokers’ IB Gateway to the FMZ trading host on macOS. It describes Gateway as a lightweight API bridge between strategy software and IBKR, and contrasts it with Trader Workstation and IBKR Desktop. The host and…