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How to Account for Slippage in Backtesting

Posted on October 18, 2022 By 
Backtesting is a method used by investors to develop trading systems. It involves testing a trading system on historical data to see how it would have performed in the past. Backtesting can be used to test a wide variety of trading systems, from simple trend-following systems to complex algorithmic trading …
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Are Cryptocurrencies Good Diversifiers?

Posted on October 12, 2022 By 
Cryptocurrencies are digital or virtual tokens that use cryptography to secure their transactions and control the creation of new units. Cryptocurrencies are decentralized, meaning they are not subject to government or financial institution control. Bitcoin, the first and most well-known cryptocurrency, was created in 2009. Cryptocurrencies are often traded on …
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How High-Frequency Trading Impacts the Markets

Posted on October 9, 2022 By 
High-frequency trading (HFT) is a type of algorithmic trading that uses computer programs to place orders at very fast speeds. High-frequency traders use sophisticated algorithms to analyze market data and make trades based on their predictions. These traders typically trade in large volumes of shares and use very short-term strategies. …
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Another Look at the Effectiveness of Technical Analysis

Posted on October 6, 2022 By 
Technical analysis is the study of past price patterns to identify market trends and predict future prices. Technical analysts believe that the collective actions of all participants in the market, including buyers and sellers, producers and consumers, investors and speculators, etc., ultimately determine market prices. Therefore, technical analysis focuses on …
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How Monetary Uncertainty Affects Market Volatility

Posted on September 25, 2022 By 
Monetary policy is the process by which a government, central bank, or monetary authority manages the money supply to achieve specific objectives. In most countries, these objectives are stabilization of prices and maintenance of low inflation. Monetary policy is also used to manage economic growth, employment, and exchange rates. Monetary …
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Does the Fed Put Really Exist?

Posted on September 9, 2022 By 
The Fed, or Greenspan, put is a monetary policy tool used by the Federal Reserve to help stabilize the economy. The name comes from former Federal Reserve Chairman Alan Greenspan, who is credited with using the tool to help stave off a recession in the early 2000s. The Fed put …
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Identifying Correlation Risks of Large Portfolios

Posted on September 4, 2022 By 
Correlation is a statistical measure of the relationship between two variables. In trading, correlation is used to identify relationships between different securities. For example, a trader might want to know if two stocks move in the same direction. If they do, they are said to be positively correlated. If they …
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