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

Amygdala and the neurophysiology of Greed and Fear

Going into a combat mission without an exit plan is suicide. In fact, the only soldiers who never bother with exit plans are kamikaze. On the other hand, market participants routinely enter positions without a clear exit plan. The problem is that as soon as we enter a position, our emotions impair our ability to make rational […]

3 reasons why selling futures is a not a hedge to the Long book

In the Long/Short equity space, managers find it difficult to find “good shorts”. So, they resort to selling futures in order to reduce the net exposure (Long – Short exposures). With low net exposure, volatility comes down, VAR is apparently low, so it is possible to leverage up again; problem solved, or not ? Selling futures solves only […]

The view from the short-side: how we process emotions and the market signature of the 5 stages of grief

Market participants are constantly asked to defend their conviction. The moment they have to justify their positions is the moment they lose impartiality. They become attached to whatever they have to defend. Being right is no longer about the process (taking calculated risks), but about the outcome (making money). A losing position is an attack on the ego. For this reason, market participants […]

Regardless of the Asset Class, There Are Only Two Types of Strategies

Finance is one industry where there is no shortage of creativity. There is always a new strategy, investment vehicle, or asset class. This alphabet soup is confusing, particularly when it comes to assessing risk and reward across asset classes. Yet, there is a simple universal way to classify strategies. They fall into two buckets: either […]

Is Stock Picking Overrated ?

Summary If 80% of managers underperform their benchmark, we probably focus on the wrong thing. How about focusing on gain expectancy instead of stock picking ? Signal module: how often we win (hit ratio) is not a function of what we enter (stock picking) but how we exit. Money is made in the money management module: […]