Warren Buffett says… Diversification is for Idiots I have seen a lot of gurus and market experts advocatingyou should focus your ammunition on 2-3 stocks that you know really well. They claim that retail investors don’t have the capability to own so much stocks and limited time to do research on companies. Even Malaysian stock […]

# Author: qinfeng

## Should You Cut Your Losses?

Every successful trader is disciplined,this is a quote that trader/investor had heard for too many times. Every successful trade should have a plan to enter, plan to exit and cut loss, cut loss is a risk management technique,it can theoretically prevent your losses from getting worse. Today we are going to see if cut loss […]

## How Effective is Bollinger Bands in KLSE?

Trading with Bollinger Bands Bollinger Bands is a common strategy used by tradersI like the mathematical nature of this strategy,using a smooth moving average line, and make a “band”of n standard deviations (usually 2) away from the line. This kinds of remind me of the mathematics of normal distribution curve.I am not covering the mathematics […]

## How Effective is Moving Average Strategy in KLSE?

Moving Average Strategy Moving average strategy is a common strategy used by traders. Unlike some of the more exotic indicators,moving average readily available in many charting software or website such as klsescreener or tradingview One common usage of moving average is that,when the “fast” moving average goes above the “slow” moving average,we buy in,when the […]

## How I found the most profitable month in Bursa using Python.

The mysterious “Window Dressing” I knowThis is a crazy idea, why would there be difference in returns among months? But stay with me,after around 5 years in the market, I have heard a lot of news and rumours,about which season/month is more bullish. One of the example is the infamous phenomena we called “Window dressing”,where […]

## We are now on Android

What is this? For almost a year, klsequant stock backtester only remained as a web application. Running analysis on HUGE financial data is so much easier on python, and we do not want to burden users by making a HUGE app (Storing all those data). klsequant.com is my personal hobby project, intended to help people […]

## A Monte Carlo Simulation of your Retirement Planning 💵💵

Intuition There are countless people who planned their retirement by saving a monthly sum and investing it into the stock market 📈📈📈. There are also plenty of investment gurus advocating this investment strategy that is known as “Passive Investment”, which means you do not try to time the market, but rather you invest periodically no […]

## Portfolio Construction. Full Equity, Full Bond or 50/50?

Introduction People often equates return and risk, giving statements like “high risk high return”. If high risk does secure you high return, is the investment considered high risk anymore? I find Howard Marks return vs risk graph a nice way to visualize risk. According to him, the higher the risk, the more variability your return […]

## RM300 a month for 10 years?

Introduction Dollar cost averaging is a systematic strategy that allows you to buy more when price is cheap, buy less when price is high. This is a popular strategy among stock investors as well as mutual fund investors. In the long run your average buying price will be very favourable because you bought more when […]

## Magic Formula of Rule of 72. Why is it 72?

How did mathematicians come up with the Rule of 72?? Why not 71 or 73? Rule of 72 The rule of 72 is a simple formula to estimate the time that you need to double your investment based on your return. For example, how long you need to double your investment given 20% return? How […]