Trading in stock markets without a defined strategy can be suicidal, you may wipe out your account in no time. A strategy is a set of rules to enter/exit the trade along with risk management and position sizing. And talking… Continue Reading
Google uses them when you search. Facebook employs these to show you ads you might be interested in. And Amazon utilizes them to predict which products will make you a happy consumer. What are these mysterious tools that the big… Continue Reading
Mean reversion strategy involves speculating that stock prices shall revert back to the average or its mean price. The market continuously moves in phases of in and out of the median price, allowing investors to formulate their investment strategies based… Continue Reading
Quantitative Finance offers plethora of indicators and tools to predict future price movements of Stocks, commodities or any other traded instruments. Linear Regression is one of them through which price direction is speculated using statistical techniques. It has found it’s… Continue Reading
Commodity Channel Index (CCI) is an oscillator indicator which accurately identifies overbought or oversold levels. It was developed by Donald Lambert in 1980, and was originally supposed to be used exclusively for commodities trading, but later it found its application… Continue Reading
All the AFL’s posted in this section till now are Trend following. Recently, we experimented on a Mean Reversion Trading System and got surprised with its accuracy and returns. In this post,we would go through this system and its backtest… Continue Reading