Category Archives: Risk Management

A Black Box May Be A Good Choice

Some investors and traders will never be satisfied with the type of strategy they use. If they use a strategy from the public domain, then they complain it does not work. If they use a black box, then they complain … Continue reading

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Two Golden Rules Of Savvy Traders For Times Of Uncertainty

There are two golden rules savvy traders follow during times of uncertainty. Adhering to these two rules minimizes the risk of large losses due to adverse moves or lack of participation when a favorable move starts.

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Short-Term Rate Increase Neutralized

On December 16, 2015, when the Fed raised short-term rates, the 10-Year Note yield was at 2.29%. After about a month, the market has neutralized the Fed action and the 10-Year Note yield has fallen by about 25 basis points.

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Traders Should Diversify During Rough Times

Even if only one trade out of several bad trades shows a small gain, large losses can be reduced substantially. Here is an example from last week.

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Dow30 Stocks and Major ETFs That Point to a Major Change in Market Dynamics

These 16 Dow30 stocks and ETFs dropped more than 15% on August 24, 2015 and some have recovered since. In this new era of high frequency trading, even high cap stocks and popular ETFs can be part of speculative plays … Continue reading

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Probability Investing

After an amazing blog post by Howard Lindzon last night mentioning probability investing I decided to write a few things about it but the topic is vast and I will have to come back. All quant traders should be aware of … Continue reading

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A Possible Revenge of the Efficient Market Hypothesis

A virtually flat S&P 500 for 133 days this year may be an indication that the efficient market hypothesis is taking its revenge.

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