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Topic
Strategy
14 guides in Finabase Learn
- Backtest a trading strategy in Stock Master Test a signal-based trading strategy on a stock or a whole watchlist in Stock Master, read trades, win rate and P&L, and avoid the classic backtesting traps.
- Backtest indicator signals and rule-based strategies on Finabase Backtest indicators and candlestick patterns on a stock with Finabase on the web, read trades, win rate and gain, and build if/then allocation strategies over two years.
- Backtesting Testing a trading rule on historical data to see how it would have performed, before risking money on it.
- Buy and hold A long-term approach of buying investments and keeping them through market ups and downs instead of trading in and out.
- Cash-secured put Selling a put option while holding enough cash to buy the shares if assigned, collecting premium in the meantime.
- Contrarian An approach that deliberately goes against prevailing sentiment, buying when others are fearful and selling when they are greedy.
- Covered Call Selling a call option against shares already owned, collecting premium in exchange for capping the upside above the strike.
- Dollar-Cost Averaging Investing a fixed dollar amount at regular intervals regardless of price, so more shares are bought when prices are low.
- Mean reversion The tendency of a price or ratio to move back toward its long-run average after an unusual move away from it.
- Momentum The tendency of assets that have risen or fallen strongly to keep moving in the same direction for a time.
- Paper trading Simulated trading with virtual money and real market prices, used to practice a strategy or learn a platform without risking capital.
- Passive investing Owning a whole market or index through low-cost funds and holding it, instead of picking stocks or timing trades to beat it.
- Protective put Buying a put option on a stock you own so that losses below the strike price are capped, in exchange for the premium paid.
- Sector rotation Money shifting from one market sector to another as the economy or interest rates change, and strategies that try to follow those shifts.
Educational content, not investment advice. Finabase Learn explains how markets and tools work. It does not recommend any security or strategy, and examples are for illustration only. Investing involves risk, including the loss of principal. Rules and figures are for the United States unless stated and can change — check the cited source before you act.