Blog Posts

In an ideal world, traders and strategists would have access to a lot of market data before making decisions. But reality often presents a different scenario.  New markets, new products, or unprecedented situations force us to operate in a data vacuum.  For instance, if you’re trying to backtest a certain product – inflation-linked bonds, crypto, […]

Millennium Management, one of the world’s largest hedge funds, has carved out a reputation for consistent performance and extremely tight risk management.  Their approach offers lessons for traders at all levels. Let’s look into the key aspects of their strategy and explore how these principles can be applied to individual trading practices.   Key Takeaways […]

Developing a trading strategy isn’t just about following a set formula; it’s about crafting an approach that resonates with your individual strengths, preferences, and personality. Trading ultimately should excite you in the sense that you actually enjoy it and look forward to it, not leave you bored or stressed. Think about what aspects of trading […]

Inverse ETFs, also known as reverse ETFs, are exchange-traded funds designed to profit from a decline in the value of an underlying benchmark. Unlike traditional ETFs that move in the same direction as their target index, inverse ETFs move in the opposite direction. For every 1% decrease in the underlying index, an inverse ETF typically […]

Day trading and investing represent two distinct approaches to market participation. Each has its own set of strategies, goals, and risk profiles, rooted in different time horizons and philosophies toward capital growth.   Key Takeaways – Day Trading vs. Investing Time Horizon – Day trading focuses on short-term market moves, while investing aims for long-term […]

The VIX Index, often referred to as the “fear gauge” of the financial markets, measures the market’s expectation of volatility over the next 30 days. Originating from the Chicago Board Options Exchange (CBOE) on the first market day of 1990, it reflects sentiment and anticipated fluctuations in the S&P 500 Index options. When the VIX […]

Liability-Driven Investing (LDI) is an approach primarily used by pension funds, endowments, and insurance companies. Its goal it to match assets with future liabilities, such that obligations to beneficiaries can be met as they come due. LDI strategies have gained prominence in recent decades as pension funds grapple with funding shortfalls and returns that aren’t […]

Volatility-based betting strategies are more sophisticated approaches to trading that adjust position sizes based on the underlying volatility of assets or return streams. These methods try to optimize risk-adjusted returns by either sizing based on risk levels or dynamically changing exposure as market conditions change. Traders who use these strategies recognize that volatility isn’t just […]

Day trading is commonly considered a high-risk, high-reward strategy that involves buying and selling financial instruments within a single trading day. Mutual funds, conversely, are investment vehicles that pool money from multiple investors to purchase a diversified portfolio of stocks, bonds, or other securities.   Key Takeaways – Can You Day Trade Mutual Funds? Mutual […]

Mutual funds are a type of investment that allows you to pool your money with other investors and then have a professional manager invest the money for you. A mutual fund investment manager will choose stocks, bonds, and other securities that they believe will perform well, and the mutual fund will then be bought and […]