Derivative Moving Average Strategy

The Derivative Moving Average was published in an article in the "Technical Analysis of Stocks and Commodities" magazine, in June 1996. The article was written by Adam White and was entitled "The Derivative Moving Average". It describes a trading strategy that uses a simple moving average for long signals and a technical indicator called trend analysis index for sell signals.

The moving average in the entry signals was used to catch trending stocks/securities. According to Adam White, the moving average was not used in the sell rules because it suffers from two important flaws. The first flaw occurs when the market or security is not trending, consequently it will cross the moving average several times and very quickly. The second flow is caused by the lag of the moving average that is due to the way it is calculated.
For these reasons, the author used the trend analysis index to produce exit signals.

The current trading system uses the Derivative Moving Average strategy plus a long ranking system. The Ranking system instructs the simulator to buy stocks with the lowest 5-Bar Rate of change.
I have also added a price filter (stocks with a close price lower than 2 are ignored) and a profit stop of 10%.

Technical Analysis

• Indicator/Price Value on a Specific Trading Date
• Inverse Fisher Transform
• Industry Measure: Ratio of Bullish to Bearish All-Star Traders Picks
• Global Market Rotation Strategy V1.0
• Low Risk Entry (BULLISH)
• VWAP - Volume-Weighted Average Price
• Reverse Collar Option Strategy
• Positive trend breakout list (SMA100-based)
• ETF Symbols - Hong Kong Exchanges
• Industry Rotation Strategy - iShares ETF Dow Jones Stocks
• More trading objects...

Fundamental Analysis

• Equity Valuation
• NYSE Margin Debt
• Plot Economic Indicators on a Chart
• NSE - Security-wise Delivery Position
• Short Selling Data
• NYSE Arca - Daily short sale data
• Measure the value of the stock market using the Q-Ratio valuation method
• Implied Volatility of iPath ETNs - IV Historical Data
• Consumer Price Index - Historical data
• IPO Pricings - Recent and Historical
• More trading objects...