Run Your Trading Like a Business

One of the biggest wins we have at Robot Wealth is in helping aspiring traders see the markets, and profitable trading, for what it really is. Rather than utilising a tried and tested approach that has generated real money in the markets, in practice, many aspiring traders gravitate to seemingly exciting approaches with the weakest …

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Humility and The Pain Trade

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 …

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Trading Lessons from Gamblers

Pick the Easy Games Like many sociopaths, Frank Wallace was a fan of the philosophy of Ayn Rand. He wrote a book called “Poker: A Guaranteed Income for Life”, started a cult based on Rand’s philosophy of objectivism, and got convicted of tax fraud.   “Poker: A Guaranteed Income for Life” is about getting edges in …

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Backtesting Bias:
Feels Good, Until You Blow Up

In an ideal trading universe (free from backtesting bias), we’d all have a big golden “causation magnifying glass”. Through the lens of this fictional tool, you’d zoom in and understand the fleeting, enigmatic nature of the financial markets, stripping bare all its causes and effects. Knowing exactly what causes exploitable inefficiencies would make predicting market …

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Momentum Is Dead! Long Live Momentum!

In our inaugural Algo Bootcamp, we teamed up with our super-active community of traders and developed a long-only, always-in-the-market strategy for harvesting risk premia. It holds a number of different ETFs, varying their relative weighting on a monthly basis. We’re happy with it. However, the perennial question remains: can we do better? As you might …

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Risk Premia Harvesting:
Investing in Things That Go Up

This risk premia post is part of a series derived from one of our recent Bootcamps, in which we developed a strategy for harvesting risk premia. We have allocated proprietary capital to the strategy, and many of our members are trading it too. In our Bootcamps we develop trading strategies in collaboration with the Robot …

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ETF Rotation Strategies in Zorro

At Robot Wealth we get more questions than even the most sleep-deprived trader can handle. So whilst we develop the algo equivalent of Siri and brag about how we managed to get 6 hours downtime last night, we thought we’d start a new format of blog posts — answering your most burning questions. Lately our …

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Dual Momentum Investing: A Quant’s Review

I recently read Gary Antonacci’s book Dual Momentum Investing: An Innovative Strategy for Higher Returns with Lower Risk, and it was clear to me that this was an important book to share with the Robot Wealth community. It is important not only because it describes a simple approach to exploiting the “premier anomaly” (Fama and French, …

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