Category: Technical Analysis
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Mastering VWAP: The Ultimate Guide to Precision Trading with Volume-Weighted Insights
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Read more: Mastering VWAP: The Ultimate Guide to Precision Trading with Volume-Weighted InsightsThe Volume-Weighted Average Price (VWAP) is a widely used technical indicator in technical analysis. It calculates the average price of a security, weighted by the volume of trades during a specific period. The central concept of VWAP is that it provides traders with the instrument’s fair value, combining both price and volume data for better market…
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The Buy-and-Hold Trap: What Backtests must really measure (Python included)
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Read more: The Buy-and-Hold Trap: What Backtests must really measure (Python included)When developing new trading strategies, it’s crucial to compare their performance against a benchmark. This practice not only validates your strategy’s effectiveness but also offers valuable insights into risk management and capital efficiency. In this article, we’ll explore the importance of benchmarking, demonstrate how to implement a simple trading strategy using Python, and compare it…
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I compared 6 methods to identify the trend of the stock market. These are the results!
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Read more: I compared 6 methods to identify the trend of the stock market. These are the results!Identifying trends is crucial in trading, as it helps traders align with market momentum, maximizing profits and minimizing risks. By recognizing the market’s direction, traders can make informed decisions on entry and exit points, improving overall strategy and avoiding costly mistakes in volatile conditions. In this article, you can expect the following: Please note that…
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Build your own trading index with Python
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Read more: Build your own trading index with PythonCustom indices offer flexibility and control over the composition and weighting of assets, providing your own unique benchmark that can better reflect your investment strategies compared to traditional indices. This article will guide you through building custom indices using Python. Why Custom Indices? Why we will calculate US Dollar Index While you can practically create…
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Do it like Hedge Funds! How to read 13F (and some Python to parse it)
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Read more: Do it like Hedge Funds! How to read 13F (and some Python to parse it)We, small traders, are always trying to find our edge on how to trade smartly with the limited resources that we have. On the other hand, there are hedge funds, with armies of traders, quants, developers, as well as the most important. Money and Data! So how can we beat them? Well, we can’t… All…
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12 Risk metrics for investments with Python. From standard deviation to R-squared
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Read more: 12 Risk metrics for investments with Python. From standard deviation to R-squaredIn the investing world, where gains and losses are changing every second, understanding the risk is one of the most important things to do. This article guides us through 12 risk metrics you can easily compute with Python. These metrics range from the classic Standard Deviation, which measures the variability of returns, to R-squared, which…