Quantitative trading strategies harnessing the power of quantitative techniques to create a winning trading program:
DON’T PUT ALL YOUR EGGS IN ONE BASKET
Employed by Casino and betting houses for thousands of years.
diversification is spreading your money in a variety of investments.its a risk management strategy
goal help protect the overall value of the portfolio against loss.
Investment that gain value could potentially compensate for those that lose value.
NOTE: diversification only helps when combining non-correlated returns.
Diversification is based on mathematical principles—its advantages are not subject to debate.
Several Diversification Strategies:
Trade ACROSS MARKETS
Oil, Forex, Sugar Market
Trade ACROSS UNCORRELATED STRATEGIES
Moving Average, Channel Breakout
Trade ACROSS PARAMETERS WITHIN STRATEGIES
20/40 of Channel breakout and 40/80 of channel breakout
There is not holy grail. because performance DECAYs over time to zero profitability.
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