Hedge Funds Are Doing Well

Despite record outflows in 2016 and even a dose of the usual negative publicity, hedge funds have done well and the industry is looking forward to more growth. Based on performance data since 1977, hedge funds have outperformed the S&P 500 total return on a both absolute and risk-adjusted basis. Underperformance since 2009 has compelled investors to withdraw funds but hedge fund assets have steadily increased.

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Trading Strategy Development with DLPAL: Part Two

In this article we show one way DLPAL can be used to execute a long/short equity strategy.  The features generated by the p-indicator function of the program are used to identify long and short candidates. An example is included.

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Weekly Market Analysis – Tuesday, January 17, 2017 [Premium Articles]

Weekly premium reports include a market recap with commentary, performance report of selected ETFs and portfolios, technical analysis with unique indicators and directional probabilities based on machine learning.

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Low S&P 500/Nasdaq-100 Correlation Positive For the Market

The 60-day correlation between S&P 500 and Nasdaq-100 has dropped to levels reached along the 2000s uptrend. Although correlation can be dubious measure, current low levels may indicate that there is potential in the market for further gains.

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Just Follow The System

It is paradoxical but investor anxiety rises near all-time highs. This may have to do with cognitive biases and specifically hyperbolic discounting, i.e., the tendency to want an immediate payoff. At the same time, when markets are rallying, there is scarcity of bearish signals. There is a solution out if this conundrum: follow the system and if you do not have one it’s time to get one.

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Weekly Market Analysis – Monday, January 9, 2017 [Premium Articles]

Weekly premium reports include a market recap with commentary, performance report of selected ETFs and portfolios, technical analysis with unique indicators and directional probabilities based on machine learning.

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Dow Jones Or S&P 500?

There was a heated discussion in Twitter a few days ago with even some harsh language about the importance of the Dow Jones Industrial Average now that the Dow 20,000 level frequently makes the headlines. The answer requires some trivial analysis.

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Diversified Portfolio Performance in 2016

The Price Action Lab Diversified portfolio ended the year with a gain of 9% and ranked second best among 29 well-known portfolios.

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