This category contains 213 posts

Book Review of the Holy Grail Trading System

The full title of this book is The Holy Grail Trading System by James Windsor. The book writes about James’ (Soultrader’s) experience live trading an intraday trend following system that was developed with a team of people. The system performed very well over 14 months bringing a starting account of £10k to £100k before it experienced a ~50% loss … Continue reading

Statistics on Hedge Fund Launches and Liquidations

Recently read this article on Business Insider titled The bonfire of the hedge funds (link here). It showed some interesting statistics from Hedge Fund Research (HFR) on the number of funds launched and liquidated every quarter since 2008. I found the chart hard to read, so I re-plotted the data as shown. Some summary statistics over … Continue reading

Right of Order Refusal with Barclays’ Electronic FX Trading System

Came across an old (November 2015) Bloomberg article on Barclays’ Last Look functionality in their electronic FX trading system. While there have been lots of complaints from retail FX traders that their orders would run into “technical difficulties” once their trades become too profitable, the article confirms that institutional traders have the same issues when … Continue reading

Nassim Taleb vs. Victor Niederhoffer

My earlier post wrote about how one approaches the markets would differ according to one’s fundamental view about the markets. I came across some articles about Victor Niederhoffer and Nassim Taleb that I think illustrate this very well. In a way, Nassim Taleb is to trend-following as Victor Niederhoffer is to countertrend trading. Taleb goes for … Continue reading

Book Review of What I Learned Losing a Million Dollars by Jim Paul and Brendan Moynihan

This book writes about how Jim Paul got into Wall Street, rapidly became very successful, and then lost more than a million dollars in a soybean-oil spread trade. In the process to learn from this mistake, he realized that there are lots of different, and contradictory ways to make money,  but all the successful investors/traders … Continue reading

Book Review of Navigate the Noise by Richard Bernstein

The full title of this book is Navigate the Noise: Investing in the New Age of Media and Hype by Richard Bernstein (2001). Richard Bernstein was Chief U.S. Strategist at Merrill Lynch. I got to know about this book after I saw some of the old pieces from Bernstein while he was at Merrill, and googled … Continue reading

Premises of Investment and Trading Strategies

There are many ways to make money (and lose money) in the markets. I wanted to summarize the big buckets of investment / trading strategies out there, their premises (i.e. their underlying thinking about the markets) which drive how various people approach the markets. It is not always the case that the strategy one uses falls … Continue reading

Book Review of The Trend Following Bible by Andrew Abraham

The full title of this book is The Trend Following Bible: How Professional Traders Compound Wealth & Manage Risk by Andrew Abraham (2013). Andrew Abraham is a CTA at Abraham Investment Management, utilizing trend following techniques across multiple markets. Some good things about the book It’s a quick read coming at ~200 pages, with color! I … Continue reading

Name of the Game From The Wolf of Wall Street

There is a scene in the movie The Wolf of Wall Street where Matthew McConaughey (playing Mark Hanna) explains to Leonardo DiCaprio (playing Jordan Belfort) how the brokerage business works. I find this scene excellent in explaining how much of the trading business works. Here’s the YouTube video: And here’s the transcription of the key bits: Jordan Belfort I … Continue reading

Book Review of Time the Markets by Charles Kirkpatrick

The full title of this book is Time the Markets: Using Technical Analysis to Interpret Economic Data by Charles D. Kirkpatrick, II, CMT (Revised Edition, 2012). This is a nice short volume coming in at ~180 pages, with large fonts and small book dimensions. I always prefer books with these characteristics because I believe most things can … Continue reading

Book Review of Smarter Investing in Any Economy by Michael Carr

The full title of this book is Smarter Investing in Any Economy: The Definitive Guide to Relative Strength Investing by Michael J. Carr (2008). This book goes through many different ways relative strength (RS) is calculated, and then uses backtesting to determine the best RS calculation and optimize parameters for various trading systems. Despite the book … Continue reading

Book Review of Bear Market Investing Strategies by Harry Schultz

The full title of this book is Bear Market Investing Strategies by Harry D. Schultz (2002). Harry Schultz wrote the International Harry Schultz Letter for 45 years, with his last newsletter in January 2011 when he retired at 86. 45 years is a pretty amazing run! This book is a quick read coming in at ~150 pages. The … Continue reading

Book Review of In the Trading Cockpit with the O’Neil Disciples by Gil Morales and Chris Kacher

The full title of this book is In the Trading Cockpit with the O’Neil Disciples: Strategies that Made Us 18,000% in the Stock Market by Gil Morales and Dr. Chris Kacher (2013). Gil Morales and Chris Kacher were both portfolio managers who worked for William O’Neil (of Investor’s Business Daily fame). They had great success trading the dot-com … Continue reading

Book Review of Profiting from Market Trends by Tina Logan

The full title of this book is Profiting from Market Trends: Simple Tools and Techniques for Mastering Trend Analysis by Tina Logan. The book is full of large chunks of text explaining terminology and listing possible actions that traders can take at various market junctures / scenarios. While it is good to be open to the possibilities … Continue reading

Book Review of Market Evaluation and Analysis for Swing Trading by David Nassar and William Lupien

The full title of this book is Market Evaluation and Analysis for Swing Trading: Timeless Methods and Strategies for an Ever-Changing Market by David S. Nassar and William S. Lupien (2004). David Nassar founded MarketWise (now defunct, old CXO review here), and William Lupien is the former chairman and CEO of Instinet. Two things that I picked … Continue reading

Book Review of Trading Options: Using Technical Analysis to Design Winning Trades by Greg Harmon

The full title of this book is Trading Options: Using Technical Analysis to Design Winning Trades by Greg Harmon. The book is divided into 5 main parts: (i) market analysis, (ii) sector analysis, (iii) individual stock analysis, (iv) options combinations, and (v) execution tips. In the first part of the book, Harmon wrote about looking at lots … Continue reading

Notes from Mark Minervini Interviews

After reading Mark Minervini’s book (see review here), I wanted to learn more and started going through his interviews here, audio interviews, a couple of YouTube videos, etc. There isn’t much more on top of what he has in this book. The main takeaway I got was clarification on how he takes profits for winning positions. … Continue reading

Sam Barnett: Rising Hedge Fund Star

I recently came across the name Sam Barnett. He is a 24-year-old founder of a quantitative hedge fund (SBB Research Group) with more than $100M under management. He started the fund after his Sophomore year at college, and the fund started trading on Feb 15, 2011. His story is pretty amazing. He developed a quantitative trading model while … Continue reading

Ira Sohn Conference 2014: Summary of Calls

I was reading about the Ira Sohn Conference (May 5, 2014) that just ended. Some quick notes on the speakers and their ideas MichaelNovogratz (Fortress Investment Group) Long Brazil if President Dilma loses election ChrisShumway (Shumway Capital) Short Chinese Yuan (CNH) Long Moody’s JeffreyGundlach (Doubleline Capital) Short S&P Homebuilders ETF (XHB) PhilippeLaffont (Coatue Management) Long Liberty … Continue reading

Book Review of Trading Regime Analysis by Murray Gunn

The full title of this book is Trading Regime Analysis: The Probability of Volatility by Murray Gunn (2009). According to the bio, Murray was a money manager trading in primarily the FX markets. He advocates trend-following, and the book’s main idea is most strategies work, the key is to be able to identify the environment the … Continue reading

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