Podcast #1!!! Accepting Loss
Aug21

Podcast #1!!! Accepting Loss

Download File Listen through host page   Trendmovements is now introducing podcasts to our archives for those who enjoy listening to audio while doing other tasks, or for those who just hate reading. We hope you enjoy the audio. This is the first entry, and I assume they’ll get better as we move up the experience curve. This edition of the podcast revisits our early article on Accepting Loss. Losing is a part of playing any...

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Asset Allocation
Aug20

Asset Allocation

[tabgroup] I have been browsing some excellent websites recently and I came across a post from a blog that is listed in blog roll that talked about asset allocation. I thought that it would be fun to do a series of individual posts where I would profile an asset allocation investment style called, the Lazy Portfolio, to see how it has done over the past years. I’m going to take the approach that people looking at these blog...

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NPR Broadcast on Short Selling
Mar17

NPR Broadcast on Short Selling

I posted an article on the morality of short selling several months back. I recently listened to a podcast on the topic on NPR’s “Planet Money.” It starts out with an Herbalife conference call.  Herbalife is a company that sells weight loss shakes, vitamins, etc. The company is doing well and reporting good numbers during the call. Next, David Einhorn, a renowned short seller gets on the conference call with Herbalife. He asks how...

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Correlated to
Jan27

Correlated to

Diversification is one of the most commonly techniques used to minimize investment risk.  One of the best ways to think about diversification is the same way you would think about an oil tanker.   George Soros says it best: GEORGE SOROS: Markets are inherently unstable, or at least potentially unstable. An appropriate metaphor is the oil tankers. They are very big; and therefore, you have to put in compartments to prevent the sloshing...

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Management of Financial Risk |  Sharpe Ratio; Calmar Ratio: Pain to Gain Ratio
Jan21

Management of Financial Risk | Sharpe Ratio; Calmar Ratio: Pain to Gain Ratio

There are many risk metrics one can use to evaluate, the performance of a fund manager. The risk metric that has become the standard for judging fund manager risk performance is the Sharpe Ratio.  The Sharpe Ratio – A ratio developed by Nobel laureate William F. Sharpe to measure risk-adjusted performance. The Sharpe Ratio tells us whether a portfolio’s returns are due to astute investment decisions or a result of...

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Rules of the Trade | Rules for trading

Rules of the Trade | Rules for trading So I wanted to post something that I think that would help people immensely.  They are some rules from Ed Sekyota who is profiled in Jack Schwager’s excellent book Market Wizards. The song is named “The WhipSaw Song”.  In the song Ed Sekyota and his band list all the essentials for being a profitable trader.  It really is that simple! 1.     Ride your Winners 2.     Cut Your Losses 3....

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Hedge Funds Alpha
Oct24

Hedge Funds Alpha

  So the World Money show in Toronto is finished!  It was well organized and I met a lot of nice individuals.  I was able to take in four speeches at the World Money Show. Since I am a systematic trader I didn’t want to spend too much time in the speeches that talked about systematic trading even though I did take in one speech about “Backtesting and its Pitfalls” which was well done.  I heard a particular phrase being...

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Skewness and Kurtosis of Hedge Funds
Sep17

Skewness and Kurtosis of Hedge Funds

  Skewness and Kurtosis of Hedge Funds| In a number of previous post I wrote that learning how to program has loads of benefits.  I have started to do a lot of backtesting and research in matlab lately.  I haven’t left excel and it will probably take me a long time to go from excel to matlab.  I have noticed that Matlab is blazing fast; I mean as fast as the marvel comic book character “Flash”! Who doesn’t love...

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Automated System Trading
Sep02

Automated System Trading

Automated System Trading | In my previous blog post I wrote about emotional trading, which was published on August 31st, 2012.  I mentioned how I had met a number of traders that had a hard time of removing their emotions from their trades. In my post I mentioned that people are just wired in a certain way. Given a number of possible outcomes, we will usually pick the same outcome.  So I decided to do a small experiment within my...

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Podcast; The Trend Following Manifesto
Aug31

Podcast; The Trend Following Manifesto

I f you’re interested in trading, and trend following in particular, Michael Covel’s Trend Following Manifesto is some good listening. Michael Covel is the author of Trend Following. Covel interviews people who are practicing the philosophy highlighted in his book. If trend following isn’t your cup of tea, but you’re still into trading, there will still be some jewels to pick up in his interviews of traders and...

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