nicknn

Your brain cares about your repetitions.

A lesson I wish I learned earlier: Your entire trading career will change the moment you stop looking for more indicators and start executing the simple strategies you already tested.

I regret to inform you that robust strategies rarely come from optimization runs and always from periods of painful simplification.

Top 10 Algorithmic Trading Strategies (and how they work) 🧵

This @waitbutwhy illustration is 👌

Trading is hard for a reason most people never understand. In real life, good decisions usually feel good. You work hard → you get rewarded. You behave well → things improve. Trading breaks that contract. In trading, you can make a perfect decision and still lose. And that does something dangerous to the human brain. Because the pain isn’t about money. It’s about being punished for doing the right thing. That moment is where most traders break. Not on the loss. But on what they do next to escape how the loss feels.

‼️ Quant Roadmap 2024/25 Ultimate Edition 🚨 Containing: - Hundreds of resources - GBs of free data - Guidance on strategies - Much more! [link below!]

I modified it. these seems to work better: Help me understand this paper step by step. Start from a high level with simple explanations, then move to very low level, detailed technical explanations until I fully understand it. Make sure the explanation is extensive, with careful deconstruction, and explain everything using first principles. Create text-based diagrams so I can understand, and include examples that use these diagrams. Use diagrams of specific examples so the reasoning can be clearly unrolled. Do not create any images, only use text for the diagrams. Do not move on to the next step until you have confirmed that I understand the current step with quiz questions.

1/ There's a concept known as financial compounding, but most people don't know about intellectual compounding. Buffett and Munger employed this to great effect and to accumulate mental models such that they can make large decisions quickly. Intuition is simply reading a lot.

JUST IN: On-chain data confirms this is the second-largest liquidation event in #Bitcoin's entire history, right after the #FTX collapse in November 2022. This comes amidst news that Germany is selling $3.5B worth of seized $BTC, and Mt. Gox begins paying back $8.5B to creditors, with the majority expected to be sold.

Some great books (non quant): Quick thread …

We are NOT in an altcoin bull run. Not even close. If you're struggling this cycle, you're not alone. 🧵: I just dug through the data which reveals some shocking truths about the current state of the market. (it also holds the key as to when things could turn around).👇

Altseason is not even close, say experts. Altseason is about to start, say other experts. But, what of this true? I spent 30 hours analyzing all the data... What I found will shock you 🧵👇

At the @SohnConf, @nshalek of @RibbitCapital made an investment pitch for $ETH in front of institutional investors. He discussed tokenization, DeFi, stablecoins, upcoming ETF, and ETH's potential for an emergent store of value. Here's the must watch 7 minute clip:

I wrote 2 papers on this subject a while ago 1)Delta-hedged P&L under jumps& discrete hedging& costs papers.ssrn.com/sol3/papers.cf… 2)Optimisation of hedging frequency papers.ssrn.com/sol3/papers.cf… These papers establish optimal hedging frequency/bands Computing "right" delta is another topic

Teaming up with well-known researcher and industry expert @GaryAntonacci , we are proud to announce the publication of our new research piece A Century of Profitable Industry Trends This study delves into the profitability of a simple, low-frequency trend-following model applied to US industries using a comprehensive database of all US stocks traded between 1926 and 2024. Over the past century, the Timing Industry portfolio achieved an average annual return of 18.5% with an annual volatility of 12.1%, resulting in a Sharpe Ratio of 1.46. This is in stark contrast to the US equity market's 9.7% return, 17.1% volatility, and 0.63 Sharpe Ratio. In the final section of the paper, we introduce 31 sector ETFs by State Street Global Advisors and backtest the same trading methodology over the past 20 years. The ETFs successfully replicate the model's exposure and returns. We also assess the impact of commissions and slippage, demonstrating that the active timing strategy remains largely profitable even with high trading costs. Read the full paper for FREE at this link: bit.ly/CentTrends @alphaarchitect @Covel @BearBullTraders @Andrea_Barbon @CliffordAsness @basso_tom @steenbab

sharpetwo.com/p/finding-trad… this stuff is worth a look: empirical and actionable (there is nothing worthwhile that isn't both of these things).

How do we protect and grow our wealth for an unknown future? For the past decade, we’ve been researching and working on the answer to that question....The Cockroach Approach! Learn More and Download the Cockroach Approach Paper! mutinyfund.com/cockroach/