#quantlog
18 posts tagged ‘quantlog’
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 Rebalancing? — When Do You Re-Align?
Say you started out invested exactly 60% stocks, 40% bonds. A year later, that ratio is never still. If stocks rise a lot, before you know it you're at 75% stoc
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
How Many Stocks Make Diversification Work? — The Real Number of Baskets
"Don't put all your eggs in one basket." It's the most-heard advice in investing. But then, how many baskets should you split into? Three? Or do you need a hund
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
DCA vs Lump Sum — What Buying in Pieces Buys, and What It Gives Up
When a lump of money comes in, or when you invest a set amount each month, everyone hits the same question. Put it all in at once, or split it across several ti
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