#quantinvesting
14 posts tagged ‘quantinvesting’
Win Rate vs. Payoff Ratio — Which Matters More?
"I bought ten times and got eight right." Hearing this feels like real skill. That's an 80% win rate. Yet this person's account may be in the red. Conversely, t
What Is Maximum Drawdown (MDD)? — Why the Biggest Drop Matters Most
The Sharpe ratio looked at how much it swung; the Sortino at how badly it swung. But both are stories about "average variation." What actually makes an investor
What Is the Sortino Ratio? — Why It Looks at the Downside Alone
Last issue we covered the Sharpe ratio — excess return divided by volatility, showing how much you earned per unit of risk taken. But the Sharpe ratio had one o
What Is the Sharpe Ratio? — Why Return Alone Isn't Enough
Two people. One earned 20% in a year, the other 10%. Whose investing was better? Most pick the 20%. But if the one who earned 20% saw their account cut in half
What Is VWAP? — The Line the Institutions Watch
"Institutions buy off VWAP." It's a line that circulates half like myth in trading circles, along with the simple rule that above VWAP is bullish and below is b
What Does Volume Tell You? — The Second Axis Hidden Behind Price
Look at a chart and your eyes go almost entirely to price. Yet below the price bars, there's nearly always a second bar graph laid out. That's volume. You often
What Is MACD? — The Moment Two Lines Meet
Open a stock chart and, below the price, you'll see two lines and a set of bars rising and falling like waves. That's MACD. You often hear "MACD just made a gol
What Is Momentum? — The Case for "Winners Keep Winning"
Conventional wisdom usually says "buy low, sell high." Yet one of the most stubbornly persistent quantitative strategies of the past several decades stands on t
What Is a Moving Average? The Truth About the Golden Cross
There's a trade signal you'll hear again and again on stock channels and charting tutorials. "A golden cross just printed — buy now." The golden cross is a sign
What Are Bollinger Bands? What Happens When the Band Narrows
Turn Bollinger Bands on and you get two lines wrapped around price, widening and narrowing as the chart moves. And almost everyone learns them the same way. "To