Quantitative analysis and strategies in the financial markets
Always inverse, says the famous investor Charlie Munger, Warren Buffet’s friend and business partner. What is inverse thinking? This is when we turn a problem on its head or look
Continue readingMost traders focus on finding an edge in the market by developing good and robust trading strategies. But many neglect one other very important factor for good returns: understanding your
Continue readingYesterday, the 3rd of September 2020, witnessed a pretty big drop in the stock market with Nasdaq leading the decline with a drop of 5.07%. Out of interest, I looked
Continue readingThe models that dominate all human decision-making today are duly heavy on simplistic logic, and light on magic – a spreadsheet leaves no room for miracles. But what if this
Continue readingIn a previous post, I wrote about a trader’s mindset. You have to battle the markets, of which you have no influence and control, but more importantly, you have to
Continue readingI currently reread Victor Niederhoffer’s The Eduction of A Speculator. I regard this book as one of the best I have ever read. It’s not an easy read, but it
Continue readingBackground: An EU/EEA regulation called MiFID requires brokers to categorize their clients as either “retail” or “professional” in order to determine the correct level of investor protection and transparency. MiFID
Continue readingMany traders swear to stop-losses by default, but to me, it doesn’t make sense because: If you buy something at 100, why should you just put in an arbitrary stop-loss
Continue readingNo matter how good strategies you have, they are most likely worthless if you can’t execute them properly. What looks like a piece of cake in a backtest, is completely
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By looking at some potential strategies for S&P 500 I found some very interesting facts that I wouldn’t guess beforehand. I used the ETF SPY as a proxy for the
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Last week was rather rough for the stock markets all over the world. In the first four days, the S&P 500 lost more than 4%. Media is of course full
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(Article Written by Oscar Wilkinson) Effectively investing in the stock market takes time, experience, knowledge, patience, and the confidence to invest money in what can be an extremely volatile market.
Continue readingMany traders want to take the leap and go full time. Being a full-time employee while your real passion is trading, can drain your energy. It’s frustrating because your mind
Continue readingThis article is off-topic, but in my opinion quite important: International regulators, led by the EU and the USA, are increasingly taking steps to clamp down on money laundering and
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For years I have been trading (semi-automatically) using a simple script in Excel. Having focused solely on stocks since 2001, I decided to start looking into futures in early 2017.
Continue readingThis article covers the newly implemented 5 cents spread in certain stocks and how that has influenced my profit and loss (negatively). Background: On October 3 in 2016 SEC implemented the
Continue readingMy previous post on how I screw up by second-guessing my strategies made me change my trading habits (for the better). I have taken two actions for my day trading:
Continue readingMost traders focus on developing strategies in order to make money. So do we at Quantified Strategies, there is no other way around. However, your trading mindset is often “the
Continue readingChapter 4 in Victor Niederhoffer’s book Education Of A Speculator starts like this: There are so many ways to lose, but so few ways to win. Perhaps the best way
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I have finished rereading David Aronson’s book Evidence- Based Technical Analysis, Applying the Scientific Method and Statistical Inference to Trading Signals, a book I bought back in November 2007. This
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I thought I would share my 6 favorite trading books (I have about 75 trading books). Perhaps it’s a bit strange to have 6 and not 5 but I found
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Many years ago I bought this book. It’s not about trading, but about poker and selling. However, all the elements are relevant for stock traders. Besides, this book is much
Continue readingThe above title is a quote from George Soros. I got this quote in an e-mail from a reader of my blog, and it fits quite well for my swing
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I like to keep good records of my trading. It’s tedious and for many boring to get these data, but usually your broker/clearing firm has a lot of interesting data.
Continue readingHere are some more random “gibberish” from me about trading. This morning I had a look in one of the old Market Wizards books by Schwager. William Eckhardt on page
Continue readingHere are more personal random thoughts on trading: I saw a discussion on Twitter the other day about data mining and backtesting. Put short, one trader trades different strategies for
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I have been backtesting swing trading (holding positions 1-5 days) for many years. But because I have done fairly well in day trading, I didn’t really put a lot of
Continue readingThis has been a pretty bad week for my day trading. Yesterday, Thursday, I recorded my 4th day in a row with losses. The loss was significant as well. I
Continue readingI have received some e-mails about how I allocate my capital. I admit that this is a problem and quite a difficult task. Sometimes I have no positions, suddenly all
Continue readingTo get inspiration and motivation I read a lot. Not only trading books but also from other completely different topics. Actually, I learn more from books that are not related
Continue readingI have day traded for about 12 years, doing swing trading some 5 years prior to that. And as the headline suggests my fear of losing increases as I get
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I have just finished reading Curtis Faith’s The Way of The Turtle (for the second time). This is a very good book! If you’re a beginner or not very experienced
Continue reading….Happened today. Even after trading for so many years, and mostly trading US time, one of these unforeseen things happened today: Yesterday the US turned the clock one hour forward
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Once in awhile, I receive e-mails from readers wondering how they can get ideas to test. In order to find profitable strategies, you need to test a lot. Looking at
Continue readingThe risk is real, and trading is not easy. The above quote is from page 110 in Curtis Faith’s The Way of The Turtle. A great book! This sentence captures
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