It has long been established that the Kelly Formula provides a powerful equation for calculating the optimum level of risk with which to place a bet in a probabilistic type game. A game like blackjack or sports betting.
The benefits of creating an automated trading system are huge. With a profitable trading robot you can spend more time doing what you enjoy and less time watching screens. You can trade quicker, smarter and without emotion.
Conventional wisdom suggests that a reverse stock split is generally bad for a company’s stock. That’s because reverse splits are usually undertaken when a stock is in danger of being delisted. But is there any actual evidence that reverse stock splits lead to bad investment returns? And if there is, might you be able to make money from shorting reverse […]
To succeed in the financial markets you need to have some kind of system in place. Trading systems protect the trader from his ‘inner chimp‘ – the limbic side of the brain that relies heavily on emotions and gut instinct. The inner chimp is quick to react and respond to incoming dangers. It often makes snap […]
Download the rules to a trading system that makes 170% a year in stocks. Regular readers of this blog will be aware that I like to create trading systems using Amibroker; a program which allows you to test various investment strategies on historical stock data.
One of the most powerful functions in Amibroker is the ability to easily program rotational trading strategies. In this article I present 8 ideas that may inspire you to create a new rotational trading system.
In this article I look at a popular method for trading stocks and futures which utilises the RSI 2 indicator. This is a mean reversion technique for finding overbought and oversold securities.
Quantitative trading involves the use of mathematical calculations, data analysis and number crunching to seek out profitable trading opportunities in the financial markets. Price, volume, and fundamental data can all be used to formulate quantitative trading strategies depending on what it is you are hoping to achieve. In the rest of this article, I will […]
In last week’s post I wrote about a strategy for shorting shares that looked to sell short overbought, ‘supernova-type’ companies. The strategy produced some good results in testing and was also picked up elsewhere in the blogosphere.
This article contains a quick introduction to shorting shares then presents my favourite strategy for finding shorts. I then put this strategy to the test on historical data before finishing up with some final tips.