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Imagine you’ve tinkered for days or even weeks, perfecting a strategy idea that’s showing a whole lot of promise. You’ve meticulously tweaked a mouth-watering Sharpe Ratio out of your backtests….it even survived costs. YES! Systems go, let’s trade it. Imagine this new strategy enters a drawdown.…maybe a lengthy one....maybe from day one! How would you react to such a letdown?...

At Robot Wealth, we take a hands-on approach to systematic trading. This approach, despite being practical, often requires new readers and Bootcamp members to completely recalibrate their way of looking at the markets and retail trading. "Why would I need to recalibrate to a practical approach? What do you think I'm doing??" Maybe you're doing fine, but many aspiring traders...

Some price series are mean reverting some of the time, but it is also possible to create portfolios which are specifically constructed to have mean-reverting properties. Series that can be combined to create stationary portfolios are called cointegrating, and there are a bunch of statistical tests for this property. We'll return to these shortly. While you can, in theory, create...

The Federal Reserve publishes the yield-to-maturity of US Treasury bonds. However, the actual returns earned by investors are not publicly available. Nor are they readily and intuitively discerned from historical yields, since "a bond's return equals its yield only if its yield stays constant and if all coupons (cash payments) are reinvested at that same yield" (Tuckman and Angel, 2013,...

Before you commit your precious time to read this post on Shannon Entropy, I need to warn you that this is one of those posts that market nerds like myself will get a kick out of, but which probably won't add much of practical value to your trading. The purpose of this post is to scratch the surface of the...

I'm a bit late to the party with this one, but I was recently introduced to the feather format for working with tabular data. And let me tell you, as far as reading and writing data goes, it's fast. Really fast. Not only has it provided a decent productivity boost, but the motivation for its development really resonates with me,...

If you've ever delved into the world of retail foreign exchange trading, you'll have come across the MetaTrader platform. Let's be clear. The platform has its drawbacks. If you've traded "grown-up" markets, some of the features will leave you scratching your head. But one thing's for sure - MetaTrader provides fast, convenient access to pretty much every retail forex broker...

If you don't bring a humble attitude to the markets, the markets will quickly humble you. Being humble is fundamental to everything we do at Robot Wealth: in our own trading, and in collaborative research in our Bootcamps. The more we trade, the more we are humbled by the markets. The more we are humbled by the markets, the simpler...