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Backtesting Heikin Ashi Candle Colors to Buy Dips and Exit When Runs End Daily OHLC candles reflect in an unfiltered way the components of a daily trading day based on the open, high, low, and close prices during a trading day.  Traders benefit from this data because today’s close price less yesterday’s close price can confirm if and by how much prices rose or fell today versus yesterday.  Similarly, the open price from today less close price from yesterday can confirm if and by how much a security’s prices changed at the market open today relative to yesterday’s close price. While OHLC candles facilitate compiling a log of daily price movements, they can also reflect significant visual noise and false momentum signals from routine daily price action within and across trading days.  Heikin Ashi candles offer a powerful alternative by applying a set of averaging formulas across adjacent sessions to smooth day-to-day volatility and reduce the effect of random price fluctuat...
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 Evaluating POGL Trades Against Buy-and-Hold Across Eras Should you trade in and out of positions, or should you buy and hold? If an active strategy truly offers an edge, it shouldn’t just rely on theory—it must be backed by quantitative models evaluated across multiple decades and a diverse basket of tickers. Welcome to the Security Trading Analytics blog, where we present and backtest active position management models to let the empirical data speak for themselves. This is the third post in a multi-part series on tracking ticker performance over multiple decades across three different regimes.  The regimes are labelled: expansion, contraction, and shock.  During an expansion regime, ticker prices are generally rising.  In contrast, contraction and shock regimes denote periods of generally declining prices.  Contraction regimes have durations of months or years, and shock regimes have durations of days or months. The first post in this series presents spreadsh...
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