Trading

General trading articles

Taking an algorithmic approach automates your trading, but it requires a clear understanding of your own principles and process. So it’s all relevant anyway.

  1. The efficient markets hypothesis haunts traders with its doom-and-gloom; however, it’s clear that it makes a number of unrealistic assumptions before prematurely coming to a conclusion. Have no fear, and give it a good read. There are a number angles not really sufficiently covered by the traditional thinkers.  In any case, go forth, and trade!
  2. Optimal position sizing goes into how to size a position, or more accurately, how Ralph Vince goes after the topic. Any time you make a trade, the size of your position reflects your conviction, but also the amount of risk you are willing to take.
  3. In What is a hedge fund anyway?, you can find a loose definition and explanation of hedge funds and how they differ from any other type of investment fund.
  4. Fundamental indexing explores whether this type of strategy actually has any value for individual investors. It’s not really value investing, and it’s not really passive following of an index. What is fundamental indexing? More importantly, what do you make of it? Isn’t it better just to get a decent algo in place instead? 🙂
  5. I’ve included a few thoughts about the CAIA certification, which some people have found useful. Feel free to take a look. It has its place, but it’s not for everyone…

These are probably the more relevant trading articles on this blog. With time, I want to explore algorithmic trading specifically. This would include both high-frequency trading, and automation of longer term trading strategies.

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