Bonds Archives - FXMasterCourse

October 2, 2018 by Corvin Codirla Leave a Comment

Calculating Bond Index Prices: Analyzing the Bond Bear Market

Calculating Bond Index Prices: Analyzing the Bond Bear Market

In the previous article we set out to cover a new asset class: Bond investments. We saw how by including bonds together with stocks we could improve on our portfolio performance. Is this mixture still good given that we are now shifting in the interest rate cycle to a Bond Bear Market? In this article we […]

March 20, 2018 by Corvin Codirla 5 Comments

Why Would You Want to Invest in Bonds?

Why Would You Want to Invest in Bonds?

Of all things on this planet?! Aren’t they boring? Not explosive enough? Isn’t this stuff what old people invest in? Also, aren’t they supposed to start to sell-off? And how do you get your hands on these over the counter instruments. In the first article of this series on Creating Profitable Trading Strategies we started […]

April 6, 2016 by Corvin Codirla 3 Comments

Money Growth: Trade it Like a Hedge Fund

Money Growth: Trade it Like a Hedge Fund

In previous articles I’ve written about the idea of Kelly betting or using leverage to really boost the growth of your returns. I’ve also shown how different fundamental components work together to create an FX Benchmark index. This article is slightly different. I want to keep it KISS: “Keep It Simple Stupid.” I will show […]

Most people are familiar with the term ORB (open range breakout). It was popularized by Toby Crabel’s book “Day Trading with Short Term Price Patterns and Opening Range Breakout”, as well as the The Logical Trader: Applying a Method to the Madness (Wiley Trading) by Mark Fisher. ORB uses the price range set at the start of a trading period to determine the future price moves, using a breakout-style approach. In this article we’re going to apply this principle to the FX market using a who… Read more

How to Trade the Start of the Year: Guide to Stress-Free Positioning

Kelly betting is an optimal approach to allocating capital to your system. In this article I want to show you how to apply this approach to your trading, and more importantly what kind of interesting questions you can answer using the ideas behind Kelly betting, in particular: “How long does it take to double my money?” First let’s start out with a simple example and progress to actual markets and trading systems. The example is as follows, and tends to be an interview question for a… Read more

Kelly - What Is It and How to Use It

Market timing refers to the fact that by judiciously choosing entry and exit methods in a given market you can out-perform buy-and-hold. The first question of course is why you should buy-and-hold in the first place. The idea stems from the equity markets. Historically they have risen. The famous chart of course is the S&P 500 over the last 65 years:
S&P 500 since 1965
So why should this happen? Economic reasoning is behind this argument. Long term macro and micro economic gro… Read more

Market Timing

Mean Reversion and Market Regimes

In this second part of the Mean-Reversion in Equities series we’ll cover the reasons behind why mean reversion works in various market regimes. In the previous article we combined the idea of looking at two consecutive down-days combined with buying the S&P 500 while it was below its five day moving average. A question that stands out: why does it work so well? And, will it ever stop? The answer to this question lies at the heart of developing good trading strategies.
What’s a … Read more

Equities Mean Reversion and Market Regimes

High Frequency trading has become both the poster-boy and the scapegoat over the last couple of years in trading circles. It’s been seen as a sure-fire way of making money, as well as a sneaky way the flash-boys tax all the other participants in the market. In this article I want to cover some of the basics of High-Frequency Trading, as well as how it applies to trading from your “Living Room.” An example of such trading from your own private realm is the following P&L chart showing profits i… Read more

High-Frequency Trading from your Living Room

Investing in Bonds

Of all things on this planet?! Aren’t they boring? Not explosive enough? Isn’t this stuff what old people invest in? Also, aren’t they supposed to start to sell-off? And how do you get your hands on these over the counter instruments. In the first article of this series on Creating Profitable Trading Strategies we started with the premise that you need to look at assets and their underlying biases. We covered equities. They’re exciting. Buffett makes 19.1% a year on them. An… Read more

Why Would You Want to Invest in Bonds?