Our Research

The world does not need yet another market commentator. Our tools are designed to help investors along their investment journey

  • Signals: trend reversal signals (Bull/Bear) on equity indices, Forex and government bonds
  • Trading systems: simple steps from concept, back tests to auto-trade
  • Money management: bet sizing algorithms, money/risk management tools
  • Psychology: research and practical tools on habit formation
  • Topics: discussions on the industry, trends

People talk about an edge in trading yet never want to discuss what their edge is. Can you give an example of an edge that no longer work…

Answer by Laurent Bernut: Edge can be summed up in a formula that applies to any instrument (see below). Like risk management, everyone like to talk about it, but few people actually can distinguish between sustainable, stylistic, and systemic edge I. Examples Let’s start with examples: Chinese IPOs: Institutional and some retail investors participate in […]

Sharpe ratio: the right mathematical answer to the wrong question

Andrew Swanscott runs the podcast Better System Trader. This is great resource: fantastic interviews with real-life practitioners. http://bettersystemtrader.com/032-laurent-bernut/. I made a statement that attracted a few comments from listeners: Sharpe ratio is the right mathematical answer to the wrong question. Here is the answer as Andrew kindly re-posted on his website. Sharpe was the right […]

What the great Chinese philosopher Bruce Lee can teach Fund managers about mastery

Answer by Laurent Bernut: This was originally a question on QUORA: which investment method is the best ? As the Great Chinese philosopher Bruce Lee said: “have the style of no style, be water my friend” There are two games of trading: outer and inner game of trading Stage 0: Dunning Kruger effect The Dunning Kruger […]

What programs are usually used to back-test trading strategies?

Answer by Laurent Bernut: Testing a strategy is a journey. For any journey, You need the right equipment. I test everything on WealthLab then program on other platforms. Here is why The objective of back-testing is to simulate real trading. When You trade real money, You face the following problems: Position size: You do not […]

The Trading Edge Visualiser User’s Manual

It is impossible to survive in the markets without an edge. Let alone being able to quantify it. How do You know if You even have an edge ?  If You want to articulate a better strategy, You need to 1) understand where your trading edge comes from, 2) quantify it and then 3) gradually improve it. Sharpe, […]