Category Archives: Trading Strategies

Passive Investing Is An Over-Fitted Strategy

The conflict about over-fitted market timing strategies versus passive investing has more to do with marketing and sales than with sound quantitative analysis. It appears that the main objective of this conflict is to calm passive investors and discourage market … Continue reading

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Misinterpreting Paul Tudor Jones

A lot of people who are mostly new to the markets often misinterpret comments made by famous investors and traders because they fail to understand the proper context. This results in cheap straw man arguments.

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Validation Methods For Trading Strategy Development

There are several methods used to validate trading strategies but each has advantages and disadvantages. In this article we discuss four validation methods.

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S&P 500 – SPY Divergence Due to Dividend Distribution

On Friday, September 15, 2017, the S&P 500 gained 0.19% but SPY fell 0.4% due to payment of a $1.235 dividend. This divergence does not show on the adjusted SPY chart but if the unadjusted chart is used, there can … Continue reading

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Discretionary Trading Challenge

Discretionary trading is hard and this is one reason it is being abandoned and replaced by systematic trading. Below is just an example of a trade from last week.

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What Is Idiosyncratic Alpha?

A reference to idiosyncratic trading strategies was made in a market commentary by Neal Berger, the President of Eagle’s View Asset Management. In this article we attempt to clarify what these idiosyncratic strategies are.

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