Hey hey: what's up my friends, so in today's episode i want to share with you five trading tools right that can help you improve your trading results fast, so tool number one is what i call a trend filter. So if, let's say, for example, you trade stocks and you're wondering man reiner, is this a good time to be buying in the stock markets? You know stuff like that, then you know what you want to do is to use a simple tool like a trend filter. What you can do is just overlay the index. You know whichever markets, you're trading, say: you're trading, the u.s stock markets.

You can use the s p 500 as a benchmark overlay, the s p 500, with a hundred week moving average. So if the s p 500 is above the 100 week moving average, you can conclude that the longer term trend is up and you can still look for buying opportunities in the stock market. If the s p 500 is below the 100 week moving average, then you can say that you know the overall stock market sentiment is bearish. You hold on to cash, so this simple trend, filter right will, like kind of give you a green light red light, whether you should be buying stocks or holding on to cash.

A very simple trend: filter, okay, number: two, this tool is what i call the uh it's again for for those of you, trade stocks right uh, you can use a tool called the rate of change. So here's the thing when you trade stocks right, there's thousands of stocks out there. You know whether you're trading u.s stocks or whichever stock market is. You know there are a lot of stocks out there and and let's say, for example, you trade, the u.s stocks.

So many thousand stocks. How do you know which one to buy? How do you know which one to focus on? How do you know which one has a higher probability of going up in price? So this is where you can use a tool called the rate of change. The rate of change. Simply right tells you right what is the percentage change in price of a stock over a given period, so i recommend using the rate of change over the last 50 weeks and you want to rank stocks that has the highest rate of change over the last 50 Weeks because this other stocks right are the ones right that tells you right.

These are the stocks that have increased the most in price over the last 50 weeks, because academic research has proven, and even even doing my own back testing is that strong stocks right tend to continue to outperform the market. Cheap stocks, weak stocks, they tend to remain cheap right, but strong stocks. Those in you know strong uptrend. They tend to continue to outperform the market.

So what you can do is rank stocks according to their 50 week rate of change right and focus on buying those stocks. Right that have, you know, increased the most in price over the last 50 weeks. Okay, you can just again this uh this. If you want a tip for you right, you can use a tool like uh thing or swim right this platform.

I think it's from uh td ameritrade. You can uh download that platform for free and they have this scanner in built to allow you to scan stocks right rank according to their rate of change. So it's free right go and google uh. Google.

It right at should be able to find this platform uh tool, number three trading books and research papers all right, so so not just any ordinary trading books. I want you to focus on trading books that comes with a specific set of trading rules trading system and they have the back test results to show for it. And the reason for this is that, based on my experience right, most authors, who writes trading book - and they dare to you - know - share their trading rules with the back test results. Chances are those systems are backed by a proven concepts, and they did they do work right.

If not, they wouldn't want to. You know, tarnish their name sick by putting out something that is not proven to work. So usually these are, i would say, these are books that are worth looking into diving deeper into. If you want some ideas, you can look at uh unholy grill by nick ratch, following the trend by andreas cleno.

Uh stocks on the move. Um mean reversion trading systems by howard b, bendy uh. I look into the work of larry, connors and cesar alvarez, so these are just out of my head right. These are people, books and stuff that you can read check it out, and you know see right whether you can have get any trading ideas trading strategy strategy from their sharing.

Okay - and one thing i mentioned - is also research paper. So research papers is more academically written. It's not as easy to read as books, but again, if you're prepared to do the work, you can go down to ssrn.com and they have a a collection right of all these different research papers that you can look into and find out new trading ideas, strategies that You can, you know, implement and see if it works for you. So that's number, three trading books and research papers number four invest in the back testing platform.

I mean i can't emphasize how important this is, because what a back testing platform does is that it can fake your trading rules that you have developed right and test it across historical data to see whether your trading strategy works or not. And it's all in a matter of minutes right just it gives you the results, and some of you know i might be saying but rainer you know just because a strategy works in the past does not mean that it will work in the future. I do agree. I perfectly agree with that, but let me ask you: would you take a trading strategy and you know that that trading strategy right the back testing results is a flop? Will you trade it in real time, of course not so what backtesting does it's is that it gives you a a gateway to know what has worked in the past and what hasn't worked in the past, because for those trading strategy that hasn't worked well during the Back testing, you can be sure that it's not gon na work well in the live markets, so it helps you filter out.

You know what works and what, though, no guarantee will work in the future, but you really put the odds in your favor. Okay, especially if you know, testing robust trading strategies, strategies with proven concepts, there's a good chance that it could work in the future in life markets right. But if you know that a trading strategy has failed during a back test, then in life markets. Clearly, you won't trade it.

So that's what a backtest can do for you right help. You filter out, filter out what has worked in the past and then from then on. You decide decide whether this is something worth trading right in the future, in the live markets and finally, the fifth tool that i have for you is uh upwork upwork.com. So for those of you who don't have programming knowledge like me like that, you can go to upwork and you know look for freelancers programmer to help you with your back testing or whatever programming.

You know, uh work that need to be done. So there's really no excuse out there. Okay, you in one way or another, you got to invest your time. If you don't invest your time, then invest money.

If you don't invest time, you don't want to invest your money, then you shouldn't be trading okay. So with that said, let's do a quick recap. Number one tool number one is uh to use a trend filter to you know, let's say buy stocks in an uptrend and go into cash during bear markets. Number two is rank stocks according to their rate of change.

Focus on buying the strongest stocks out there tool number three is uh trading books with back test results or even a research trading research papers, number four back testing platform, uh and number five you know can go to a website like upwork.com and you know, look for Freelancers programmer to help you with your trading needs, so with that said, i wish you good luck and good trading. I will talk to you soon. You.