by Tom Starke Can Monkeys beat the market? Much has been discussed about the famous “Monkey Portfolio” where a monkey throws darts at a board with stock tickers and the resulting portfolio outperforms the underlying benchmark. Obviously, it is a very bold proposition and I couldn’t resist putting it to…

by Tom Starke and Qian Zhu What does a good portfolio look like? “A good portfolio is more than a long list of good stocks and bonds. It is a balanced whole, providing the investor with protections and opportunities with respect to a wide range of contingencies.” Harry Markowitz. Welcome…

by Tom Starke and Qian Zhu What is systematic investing? Do we really need systematic investing to stay ahead of the game? This article discusses the complexities of the investment process and how human biases can lead to suboptimal investment decisions. A systematic investment process can overcome such biases and…

by Tom Starke and Qian Zhu Is AI trading reliable? Can AI predict stocks? I came across an article Stock Price Prediction With LSTMs on Hacker News. I like Hacker News as it has a large and generally very smart audience; the articles there are often very interesting. …

Quantitative Trading Toolbox | Python for Financial Analysis — Calculating Profit and Loss (P&L) for your trading strategy can be surprisingly tricky at times. Traders are often surprised when their calculations of realised and unrealised P&Ls don’t match up. Today let’s see how it can be done by going through a Moving Average (MA) Crossover strategy. To start with…

How to test a trading strategy and optimise its parameters Introduction A vital step in quantitative research is finding the best parameter sets for a trading strategy. Having a set of (near) optimised parameters might distinguish a winning strategy from a mediocre one. …

Whether it’s for protecting capital, earning profit from speculation or buying time to decide, options provide a wonderful tool for investors and traders. We can think of options as a kind of insurance and simply put, we insure an underlying instrument against a price drop or increase. Like with a…

by Qian Zhu and Tom Starke If you want to learn about things deeply, you need to break them. Sharpe Ratio is one of the top metrics used by traders and investors to evaluate their trading strategy/investment systems. …