TL;DR - This isn’t financial advice, everyone should do their own research. With that in mind, consider mixing up the selection of assets and funds you buy, and once you buy your Stocks or ETFs you should forget about them for a while. As an employee at an investment firm, I often get asked questions like “What stocks should I buy?” and “What i... Read more 11 Dec 2022 - 7 minute read
Some people are in the habit of checking their phone or email every minute or two. Similarly, I have colleagues, friends and family who check their slow-moving investments - like their 401ks - on a near-daily basis. I do this too, and although I trade several times a week at minimum, I suspect I might be checking the long-term stuff too often ... Read more 17 Sep 2022 - 5 minute read
Backtesting is an important step in creating trading automated or systematic strategies. Google “best practices for backtesting” and you’ll find many an article or blog post cautioning against data snooping, over-fitting, and look-ahead bias. Look-ahead bias in particular is defined according to Investopedia as: […] using information or data... Read more 14 May 2022 - 5 minute read
A Markov Chain is a stochastic model describing a sequence of possible events in which the probability of each event depends only on the state attained in the previous event. From Wikipedia: A diagram representing a two-state Markov process, with the states labelled E and A. Each number represents the probability of the Markov process changin... Read more 07 May 2022 - 3 minute read
For an intro to matrices in general, see this post Multiplication Matrix multiplication is done by repetitive vector multiplication. Multiplication of two vectors is… \[\begin{bmatrix}a_1 & a_2 & a_3 \end{bmatrix}\begin{bmatrix}a_1\\b_1\\c_1\end{bmatrix} = a_1b_1 + a_2b_2 + a_3b_3 + ... + a_nb_n = \sum^{n}_{i=1}a_ib_i\] If we are deno... Read more 26 Apr 2022 - 3 minute read