Gold has long been regarded as a valuable diversification tool in investment portfolios due to its unique characteristics. As an asset class, gold has historically exhibited a low correlation with traditional financial assets such as stocks and bonds. This means that gold often moves independently of other investments, especially during …

Leveraged exchange-traded funds (ETFs) are investment vehicles that aim to provide amplified returns for a given index or benchmark. Leveraged ETFs use financial derivatives and debt to enhance their returns, which can be either two or three times the return of the underlying index, on a daily basis. This means …

Market timing refers to the practice of attempting to predict future market movements in order to buy or sell securities at the most advantageous times. Proponents of market timing believe that it can be a highly effective strategy for generating better risk-adjusted returns, as it allows investors to take advantage …

Social media influencers have become an increasingly important presence in the financial markets in recent years. These individuals have amassed large followings on platforms such as Reddit, Twitter, Instagram, and YouTube, and they use their influence to provide investment advice and insights to their followers. Some social media influencers specialize …

VIX ETPs, such as VXX, are exchange-traded products designed to track the performance of the CBOE Volatility Index (VIX). The VIX is a measure of the expected volatility of the S&P 500 index over the next 30 days, and it is often referred to as the “fear index” because it …

A stop-loss order is a type of order used in trading to limit an investor’s losses or to take a profit. It is an instruction to sell a security when it reaches a certain price level, known as the stop price. When the stop price is reached, the stop-loss order …

Out-of-sample testing is a critical component of designing and evaluating trading systems. Trading systems are often developed and optimized using historical data, which can lead to overfitting – a situation where the system is excessively tuned to past data, resulting in poor performance on new, unseen data. Out-of-sample testing involves …

Technical indicators are mathematical calculations based on the price, volume, or open interest of a security or index. They are used to help traders and investors analyze the behavior of securities in order to make informed investment decisions. Technical indicators are commonly used in technical analysis, which is a method …

In the financial markets,  a lead-lag relationship is a type of correlation in which the performance of one asset precedes that of another. This means that when the price or performance of one asset increases or decreases, the price or performance of a second asset follows suit. This type of …

Machine Learning (ML) is a type of Artificial Intelligence (AI) that provides computers with the ability to learn without being explicitly programmed. It focuses on the development of computer programs that can access data and use it to learn for themselves. The process of learning begins with observations or data, …