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
The four horsemen of apocalyptic position sizing used by professional investors
Despite picking a fair share of good stocks, it is still tough to generate some consistent serious alpha. Picking the right stocks and exiting them well tells You how often You win. How much You win, however, is a function of how much You bet. Some professional investors pay surprisingly little attention to their bet sizes. Below […]
A powerful two step process to deal with the endowment effect: The game of two thirds, or how to deal with free loaders in your portfolio
If You were the owner of an apartment building, would You allow tenants to stay rent-free forever ? You would probably do everything in your power to either collect or evict free loaders. In the investment realm however, one of the main reasons managers fail to accomplish their goals is that they allow free-loaders to stay rent-free […]
The game of two halves: an elegant two-step process designed to cut losers, run winners, while maintaining conviction
In every hospital around the world, there is an unwritten rule: surgeons should not operate on their own children. There is no such thing as professional detachment when it comes to your own child. In the investment realm however, market participants are consistently asked to defend their convictions, but also expected to be surgical about their […]
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 […]