EURSEK Archives - FXMasterCourse

November 1, 2017 by Corvin Codirla Leave a Comment

Equities 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 […]

“Greed is good”, but one shouldn’t always assume that the counterparty won’t notice. Last Wednesday, 27th January 2016, was FOMC day, news event day, and the markets went ape. Following on from the previous articles the idea was to continue to exploit the observed quote outages and extract value. Turns out that (presumably as expected), brokers aren’t that slow on their feet. I was moved from B-book status (i.e. rookie / loser status) to A-book status. Let’s just say that exces…

FOMC Day: How the Golden Goose got cooked – Getting my A-book status

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 you how to combine several instruments (three in actuality), which will create a Hedge Fund Benchmark. And then we apply leverage to this index, and see wha…

Money Growth: Trade it Like a Hedge Fund

It’s only been the fourth trading day of 2016, but there is no shortage of surprises, volatility, and all round mayhem. Today the AUDUSD had two announcements which can be considered relevant. The first was at 00:30GMT, the Building Approvals number, and shortly after 01:15GMT the PBOC rate fixing for the CNY. The first announcement was followed by a slow 10 pip grind to the downside, followed by a retracement to 0.7084. The PBOC announcement was issued at 01:16GMT, on the back of which …

More on Market Dynamics: AUDUSD and the PBOC

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 go about calculating the Bond Index going back 120 years to answer this question. Here is a chart since 1960 of US 1 and 10 year rates:
Current Interest Rate Cycle and Rising Rates
W…

Calculating Bond Index Prices: Analyzing the Bond Bear Market

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…

Market Timing

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