The "Performance Metrics 101" blog series is geared towards providing traders with the essential evaluation tools they need to assess trading performance accurately. The goal is to provide a complete understanding of these tools, enabling traders to use them effectively. Sharpe Ratio Pros and Cons The Sharpe Ratio is a widely-recognized tool in finance used [...]
Earlier this week, I published a blog post about Long-Term Capital Management. One of my Twitter followers asked, "Was Myron Scholes involved in the Black-Scholes formula for option valuation?" The answer to that is yes! In light of this, I have created a dedicated blog post about the Black-Scholes formula. The Black-Scholes Formula and Its [...]
Systematic Advantage #20: Systems can monitor more than six markets One significant advantage of automated trading systems is their ability to monitor multiple markets simultaneously. This means that the system can effectively track more than six different trading markets at the same time, which would be an incredibly challenging task for a human trader to [...]
The Seasonal Tendencies of Corn Understanding the seasonal tendencies of corn is essential not only for farmers but also for traders looking to capitalize on market opportunities. Corn, being a major global commodity, has a significant impact on the overall economy. By studying seasonal patterns, traders and investors can make better-informed decisions, and farmers can [...]
In my recent blog post, I touched on the Russian Default of 1998 and briefly mentioned the involvement of the hedge fund Long-Term Capital Management. Nonetheless, after receiving interest from a client, I have realized the need to explore the downfall of Long-Term Capital Management further, and this blog post aims to do just that. [...]
The “Trader's Mindset” micro-blog is the perfect source of inspiration to help you stay focused, determined, and motivated on your trading journey. It's not all about returns The objective isn't to relentlessly pursue returns in trading; it's about preserving your current assets. Therefore, concentrate on risk management instead of solely trying to generate income. By [...]
Bollinger on Bollinger Bands Every investor dreams of finding tools to make better investment decisions in the trading world. One such tool is the Bollinger Band, a technical indicator that has earned a place in the toolbox of countless successful traders. Bollinger on Bollinger Bands is a captivating read by John Bollinger, who created this now-famous indicator. [...]
Margin Call: The Call You Never Want to Receive Trading on the margin can amplify gains but also the potential for losses. A margin call could become an unwelcome surprise that day traders must understand and be prepared for when trading on margin. This article explores a margin call, why it happens, the consequences, and [...]
The Russian Default Meltdown of 1998 On August 17, 1998, Russia experienced an acute financial crisis, commonly known as the "Russian default," that sent shockwaves throughout the world economy. In this riveting article, we'll explore the root causes of the crisis, its local and global consequences, and the long-term impact on the Russian and global economies. We'll [...]
Systematic Advantage #19: Allows you to monitor risk fully Systematic trading is a valuable tool that traders can utilize to enhance their risk management strategy. Its main benefits are centered on its ability to monitor risk comprehensively. This approach establishes specific criteria and indicators for entering and exiting trades, giving traders greater control over their [...]
