As the yen carry trade unwinding nuked the market now it’s time to stop your survival reptilian brain and use your analytical mammalian brain. During uncertainty people like to seek comfort/shelter from numbers from nerds.Today I will attempt to come up with an allocation (buy the dip) framework using Kelly’s criterion. Using the BTCUSD and […]
Category: Quant Analysis
Portfolio Optimization using Gradient Descent
You should do 60/40 allocation in stocks/bond.You should diversify your portfolio.You should buy this, you should buy that. Okay, those are the things we heard a lot when we start to invest.But what is the mathematically optimal portfolio where you get the best returns while taking the least risk? How to measure how is your […]
Like TradingView’s Volume Profile? Here’s How to Create Your Own using Python
TradingView’s volume profile is one of the indicators that I love the most. You can Determine potential support and resistance levels How many poor souls got stuck at the peak What is the average entry price for most investors But there’s a catch, it’s only available in paid version. Such powerful tools shall not be […]
Where are the Bulls and Bears Hiding? pt 2. Backtesting Buy Low Sell High Strategy
The war and Covid continued to April 2022, but the world haven’t ended, and markets have rebounded quite significantly, I vividly remember that Alibaba soared 30% in a day in HKSE. This happened over and over again, fear to greed, bear to bull. But anyway, following my previous post link, can we profit from this […]
Where are the Bulls and Bears Hiding? An Analysis of Over 10 Years Timeframe.
In the times of extreme panic, just stand there and do nothing At the time of writing,Russia is invading Ukraine, and this sparked a lot of economic sanctions, rising energy prices, business disruptions, market is speculating FED to raise rates, which the market do not like. Every major market indices are dipping,portfolio turned red, even […]
Testing KYY’s Golden Rule using data from year 2011-2021
If you are in the Malaysian investing community,you sure will read a lot about Mr Koon Yew Yin,he is a very respected figure in business and investing world. He is also kind enough to share his insights on investing.He publicly shared his golden rule to investingwhich is My golden rule is the company must report […]
Should You Buy the Dip or Just Hold?
Who would win?: Buy The Dip vs Dollar Cost Averaging vs Lumpsum Investing Whether you are an experienced investor or just starting out,you will see people talking about buy the dip vs dollar cost averaging. “Investor” will sell you the idea about how time in the market beats timing the market.“Speculator” will sell you the […]
Is Unit Trust a Good Investment? An Analysis
Asset management industry is nothing new in Malaysia,there are easily more than 10 asset management companies that offer mutual funds or unit trust. As a savvy investor, I have read from a lot of placesthat you are better of invest on your own. Because markets are generally efficient,it is hard for fund managers to consistently […]
Diversification is for Idiots
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 […]
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 […]
