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Articles about Trading

Analytical Thinking and Decision Taking

Posted by Daniel Cano on June 24, 2024, 6:20 a.m.

In trading, as in life, decisions are the key factor that will define our success. In a world where we are constantly bombarded with information, the ability to analyze and evaluate data is essential for making informed decisions. In this blog post, we delve into ...

Portfolio Optimization Using Genetic Algorithms

Posted by Daniel Cano on May 27, 2024, 11:07 a.m.

Did you know that nearly 90% of portfolio managers underperform their benchmark indices over a 15-year period? Moreover, according to a Vanguard study, 91% of a portfolio's long-term performance is attributed to its asset allocation? Portfolio optimization is not just an advanced technique, but ...

Monte Carlo Simulations: Importance, Contributions, and Limitations

Posted by Daniel Cano on May 20, 2024, 9:22 a.m.

In quantitative analysis and risk management, Monte Carlo simulations stand out as a cornerstone technique, widely utilized across various fields such as finance, engineering, project management, and physical sciences. Named after the famed Monte Carlo Casino in Monaco, these simulations reflect the fundamental concept of ...

Modern Portfolio Theory Applied in Python

Posted by Daniel Cano on May 14, 2024, 3:43 p.m.

What Is Modern Portfolio Theory (MPT)? Modern Portfolio Theory, also known as Markowitz Portfolio Theory, is a revolutionary concept in the field of investment and finance that was introduced by Harry Markowitz in his paper "Portfolio Selection", published in the Journal of Finance in 1952. For ...

Unraveling Monetary Relationships: The Correlation Between Currency Pairs and the Differences Between Interest Rates

Posted by Daniel Cano on April 22, 2024, 9:03 a.m.

In the world of finance, the relationships between different global economies are crucial for understanding and predicting movements in the markets. One of the fundamental aspects that investors and analysts study is the difference in interest rates between different fiat currencies. This disparity not only ...

Absolute and Relative Trend Following

Posted by Daniel Cano on April 15, 2024, 11:28 a.m.

Trend following systems emerge as a popular and robust solution for traders and investors, offering a structured methodology to identify and capitalize on market trends. Although they present notable advantages, it's important to consider their limitations and use them complementarily with other analysis strategies to ...