During a high-turbulence market regime it often makes sense to fix the profit quickly. However, Elle's broker DeGiro provides fee-free trades with the following ETFs only once per months. Elle's trading capital is relatively small so far (€2165), thus paying €2 trading fee shall be avoided whenever possible. So I taught her to lock the profit in long position by means of the respective inverse ETF! Continue reading "JuniorDepot18 – Hedging Profit by a Long-Short Lock-in"
Elle continues growing her wealth, reaching the CAGR of 11.50%. Now she is to learn that keeping a good pace in the long run implies making pauses. Due to political risks and economic concerns in Europe we have, so far, closed all positions in Elle's portfolio.
Continue reading "JuniorDepot17 – Fixing Profit for a while"
A First Course in Quantitative Finance by Thomas Mazzoni was published a year ago. It provides a thorough analysis of such topics as Local Volatility, derivative pricing via PDEs (and solution of theses PDEs) as well as a good insight of Levy processes. Although it might be too big and too general for the 1st course, it is definitely worth reading as the 1.5* course in quantitative finance. Continue reading "Reading A First Course in Quantitative Finance by Thomas Mazzoni"
The markets continue falling as the trade war between China and US escalates. But it did not affect Elle's portfolio. Moreover, she has even made some money with an inverse ETF!
Continue reading "JuniorDepot16 – Markets Fall but Not Elle’s Wealth"
Mattel, a company that owns Barbie brand, currently experiences bad times and suffers losses. However, this may be irrelevant for tactical traders, esp. those who rely exclusively on technical analysis. But now they shall be strongly disappointed too: MAT stock has drawn a pattern, which can be named doubleF*ck.
Continue reading "MATtel Stock – Barbie Reaches Puberty and Draws a DoubleF*uck Chart Pattern"
Malkiel affirms that the stock returns follow the random walk. Lo and MacKinlay retort they do not.
In this post I show how a mean-reverting process can be efficiently disguised as a random walk. Most likely, the market does follow a similar disguise-pattern (at least sometimes). Continue reading "Reproducing a Pseudo-Random Walk down the Wall Street"
Elle got started with her savings plan in Jan 2018 with a monthly installment of €100. Now she has sufficient trading capital, so that (taking broker fees into account) the stock picking may make sense. She tried to make her hands dirty with stock selection and earned €139,53 gain or 8.6% return in less than a month! The CAGR of her savings plan is currently 13.75% Continue reading "JuniorDepot15 – Reaching 13.75% CAGR with stockpicking"
Elle's portfolio has recovered with the recent rise of the markets. We fortunately closed all positions near their recent maxima, Elle again makes profit.
Currently, we watch the market carefully but don't hurry up to open the new positions. If you wait by the river long enough, the bodies of your enemies will float by (Sun Tzu). Continue reading "JuniorDepot14 – Getting Profitable Again and Training Patience"
QuantLib development often lags the version of Visual Studio. Thus you need to do some manual tuning to build QL v1.14 in VS 2019. Generally, if you can, you shall so far stay by VS2017. Continue reading "Building QuantLib 1.14 with Visual Studio 2019 preview"
As we have previously reported, the year 2018 was not very good for Elle's portfolio, indeed it was bad. But we looked optimistically in future and were right: the portfolio recovers with the market and the opportunities for the active trading arise. Continue reading "JuniorDepot13 – Things are getting better as the markets recover"