risk premia

Posted on Nov 09, 2020 by Robot James
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  Here’s a chart of long-term asset performance…. The blue line shows returns from US stocks from 1900 to today. That’s a 48,000x increase in nominal value. The yellow line shows the returns from US bonds from 1900 to today. That’s a 300x increase in nominal value. If you look at this in isolation things look easy. You just buy all this stuff. And it is both that easy and not quite that easy… We need to ask: Why does this stuff go up? Can we be confident it’s going to go up in the future? This post is a lesson taken directly from Zero to Robot Master Bootcamp. In this Bootcamp, we teach traders how to research, build and trade a portfolio of 3 strategies including a Risk Premia Strategy, an Intraday FX Strategy and a Volatility Basis Strategy. If you're interested in adding strategies to your portfolio or are just keen to start on the path to becoming a successful and sustainable systematic trader, you can check out full details of the Bootcamp here. For more on Risk...

Posted on May 29, 2019 by Robot James

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 our trading becomes. The financial markets are very efficient. Good traders inherently understand this, because good traders know it is hard to make money trading. Understanding this point is a critical starting point for a trader's success. At Robot Wealth, we call this Embracing the Mayhem. Our new ebook, now available here. You must understand the efficiency and the randomness in the market, and you must accept it. Embracing the Mayhem is the first step. Next, you must understand the games available to you as a trader. You must pick the ones with the best chance of a positive outcome, and you must play those games in an effective way. There are two types of games available which will pay you:...

Posted on Jan 15, 2019 by Kris Longmore

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 Wealth community over a 6-week period. The Bootcamp format is proving incredibly useful for teaching our members how to research, develop, think about the markets and execute real trading strategies. They get to watch us do it every step of the way, and watch every decision we make. In our next Bootcamp, we'll be using machine learning tools and techniques to build live trading strategies. Find out more about our Algo Bootcamps, including how you can be a part of the next one, here. Investing: the easiest game in town? Trading and investing doesn't have to be complicated. Check out this chart: [caption id="attachment_5425" align="aligncenter" width="680"] source: Dimson, Marsh and Staunton, Triumph of the Optimists[/caption]   The blue line shows returns from US Stocks from...