This is a summary of links featured on Quantocracy on Monday, 11/29/2021. To see our most recent links, visit the Quant Mashup. Read on readers!
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A Complete Starter System for New Traders: Trading Multiple Instruments [Raposa Trade]Systematically trading a single instrument can be a bit dull. There are times when your chosen stock isnt trending or doing much. So your system just sits there and waitsand waits..and waits. Obviously we dont want to trade just to trade thats a good way to start losing money. But if youre bored, youre probably not going to stick to your system especially if youre
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Can Prospect Theory Explain the Value and Momentum Factors? [Alpha Architect]Traditional finance academics lean towards risk-based models to explain why various return characteristics, such as value and momentum, predict returns. But there is another school of thought often referred to as behavioral finance. This field has some of its own ideas (see below) on why different stock factors might predict returns. Prospect Theory was first introduced by Kahneman and
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Trading the Inflation Theme [Light Finance]While the holiday season has long been regarded as a time of excess, folks this year are bracing for another challenge besides annual waistline expansion: price inflation. As we gather with family and friends for the holidays in coming weeks many are predicting that this years turkey will be the most expensive in the history of the holiday with food prices having risen a remarkable 5.4% yoy.
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Building a Long-Term Equity Portfolio [Factor Research]With a long-term time horizon, investors should consider alternatives to the market-cap weighted equity indices A valuation-based approach for creating an equities portfolio may seem more sensible Using EBITDA / EV yield seems to avoid some of the quality issues of other value metrics INTRODUCTION All the evidence points to active management providing negative alpha and most investors being best