What is Backtesting? Backtesting involves applying a strategy or predictive model to historical data to determine its accuracy. It can be used to test and compare the viability of trading strategies so traders can employ and tweak successful strategies. Summary How Backtesting Works Analysts use backtesting as a way to test and compare various trading techniques …
Moving averages are one of the most used tools in stock trading. Many traders actually use only this tool in their investment toolbox. Let’s see what they are. What is a moving average? In a time series, a moving average of period N at a certain time t, is the mean value of the N values before t (included). It’s defined for each …
Share markets have endured a tumultuous start to the year, with the war in Ukraine, lockdowns in China and inflation anxieties relegating COVID-19 news flow to the back pages. In this environment, timing when markets will reach their nadir becomes notoriously difficult to achieve and we implore investors to overcome the temptation to make hasty …
As many investors have discovered over the last 6 months – you can lose A LOT! SUMMARY Bonds are typically considered safe investments However, there were decades of negative real returns Drawdowns reached 50% for U.S. Treasuries and Bonds INTRODUCTION Inflation greater than 10% was unknown for the majority of people in developed markets before …
In the past, the choice to maintain an investment portfolio of 60 per cent equities and 40 per cent bonds was a prudent one. This distribution, which allowed for diversification between these two types of assets, has long been the standard. But today, with inflation at 40-year highs and volatility seemingly here to stay, this …
Managing market volatility with alternative hedging strategies Read More »
The target mix of your investment portfolio should be built on your goals, time horizon and risk tolerance. But goals can change, and market fluctuations can cause your asset allocation to shift, so it’s important to monitor your portfolio on a regular basis and make adjustments as needed to ensure you are not taking on more risk …
Quantitative analysis (QA) in finance is an approach that emphasizes mathematical and statistical analysis to help determine the value of a financial asset, such as a stock or option. Quantitative trading analysts (also known as “quants“) use a variety of data—including historical investment and stock market data—to develop trading algorithms and computer models. The information generated …
From cloud computing to climate change, thematic ETFs have been among the big winners of the pandemic, with money pouring into the sector and a raft of new funds being launched. But how should investors choose from the growing array of options of offer? Thematic exchange traded funds (ETFs) have exploded in popularity during the …
Investors will need to start thinking about how to position their portfolio for rising inflation with expected economic growth in the wake of large-scale fiscal support and stimulatory money policy. In 2020, the global pandemic drove central banks and governments worldwide to unleash unprecedented monetary easing and fiscal stimulus packages. This spurred record low-interest rates …
