Stochastic RSI: Formula, Settings and How to Read It
How the stochastic RSI works: the StochRSI formula, what 14, 14, 3, 3 means, a worked example, and why an oversold StochRSI is not an oversold stock.
8 min read ▮ Strategy family
Mean Reversion
Stochastic Oscillator: Formula, Settings and How to Read It
How the stochastic oscillator works: the %K and %D formula, fast vs slow vs full settings, a worked example, and the trend filter that keeps signals honest.
8 min readMarket Neutral Strategy: How to Build One That Is Actually Neutral
What a market neutral strategy is, how dollar-neutral, beta-neutral and factor-neutral books differ, and how to measure whether your long/short book is really hedged.
10 min readConnorsRSI Explained: Formula, Settings, and a Worked Example
Connors RSI explained: the three-part ConnorsRSI formula, oversold and overbought thresholds, a worked example in plain numbers, and how it differs from RSI-2.
10 min readRSI-2 Strategy: Connors' Rules, Settings, and a Worked Example
The RSI-2 strategy explained: Larry Connors' exact entry and exit rules, why the 2-period setting works, a worked example, and where the edge has decayed.
8 min readCointegration in Trading: Correlation vs Cointegration Explained
What cointegration means in trading, why it beats correlation for pairs selection, and how to test a candidate pair with the Engle-Granger two-step method.
8 min readADF Test in Trading: How to Test a Spread for Stationarity
How to run the ADF test in trading: what stationarity means, how to read the test statistic, and a worked pairs-spread example with plain numbers.
8 min readZ-Score in Trading: How to Calculate It and Set Entry Thresholds
What a z-score measures in trading, how to calculate it on a spread with plain numbers, how to pick the lookback and entry thresholds, and where it misleads.
10 min readMean Reversion Half-Life: How to Calculate It and Read It
What the mean reversion half-life measures, how to estimate it with one regression, and how to use it to set lookbacks, time stops, and cost thresholds.
9 min readHurst Exponent: How to Measure Mean Reversion vs Trend
What the Hurst exponent measures, how to calculate it from lagged volatility, and how to read H above or below 0.5 before picking a reversion or trend model.
8 min readWilliams %R: Formula, Settings, and How to Trade It
What Williams %R measures, the exact formula, and a rules-based way to trade the oscillator without getting run over by strong trends.
7 min readDispersion Trading: Correlation, Variance and How the Trade Works
Dispersion trading explained: selling index volatility against single-stock volatility to monetize the gap between implied and realized correlation, in plain numbers.
10 min readMACD Divergence: Line vs. Histogram Signals & How to Trade It
What MACD divergence is, how line and histogram divergences differ, and a confirmation-first rule set with a worked example — plus the failure modes.
9 min readStatistical Arbitrage: How Stat Arb Works (With a Worked Example)
What statistical arbitrage is, why mean-reverting spreads produce alpha, and how to build and test a basic stat arb portfolio — plus the crowding risk that breaks it.
9 min readRSI Divergence: How to Spot It, Confirm It & Trade It
What RSI divergence is, why it flags fading momentum, how to trade it with a confirmation trigger and a worked example — plus the traps that make it fail.
8 min readBuy the Dip Strategy: Does It Actually Work?
What the buy the dip strategy means, when buying dips actually works, when it quietly underperforms, and how to test the rule before you risk real capital.
7 min readPairs Trading Strategy: A Market-Neutral Guide
How a pairs trading strategy works, why the spread mean-reverts, and a step-by-step framework to find, test, and trade correlated pairs with risk controls.
8 min readRSI Trading Strategy: Rules, Settings & a Worked Example
A complete RSI trading strategy — what the RSI measures, the settings that matter, entry and exit rules, and a worked example you can backtest first.
8 min readMean Reversion Trading Strategy Explained
What a mean reversion trading strategy is, why it works, and a step-by-step framework with entry rules, exits, and risk controls you can backtest.
8 min read