Recently, I’ve come across a few articles that highlight a significant shift in the market dynamics over the past 18 months. Further Thoughts on Sea Change In “Further Thoughts on Sea Change” authored by Howard Marks, the CEO of the massive fund Oaktree, a thought-provoking perspective is presented, and I find myself in […]
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Imagine having a financial tool that helps protect and grow your money, no matter the economic weather. One that is designed to work well when the economy is doing great, and also when the economy isn’t doing so well. Consider a well-balanced investment strategy that doesn’t put all your eggs in one basket. It spreads […]
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Financial markets are currently experiencing a whirlwind of activity, characterized by some unprecedented movements in various instruments. Bond yields are surging to levels not witnessed since 2007. More concerning, however, is the remarkable increase in correlation between bond and stock prices, a phenomenon rarely observed in the past four decades. In the last 18 months, […]
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As many of our portfolios enter Portfolio Protect mode, we wanted to take a minute to address the current market conditions (September 2023) and the ongoing performance of The Chartist portfolios. At The Chartist, we make no attempts to hide the inevitability of drawdowns or lacklustre performance. These situations are fundamental parts of markets and trading. Understanding they can and will happen is an important factor […]
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Escape The Volatility. Have you ever felt punch drunk on your investing journey? You know, that sensation of being emotionally drained, bewildered, or disoriented, like the aftermath of taking repeated hits to the head from Mr. Market. Uncomfortable feelings often arise in investing, and they usually come in two forms. The first is a dip […]
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You may have heard of decision fatigue. The idea that the quality of decisions made by a person deteriorates as they make consecutive decisions. This is often described as a “mental battery” that is slowly drained throughout the day. Leading to impaired decision-making or self-control. Famously, Steve Jobs and Mark Zuckerberg are said to have […]
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Let us help you answer some mean reversion questions. At The Chartist, we preach strategy diversification. That is, using a variety of trading strategies to smooth or accelerate the overall performance of portfolios. Most people understand momentum-based systems. Today I wanted to address a few points of confusion around our mean reversion-based strategies. First of […]
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Today we are going to look at my least favorite branch of mathematics… Probability…. Probability has a way of turning a seemingly simple problem into a downright confusing mess. But its importance in trading is both crucial and obvious. An important part of trading is keeping your expectations in check, and a misunderstanding of probability […]
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When starting to trade, one crucial element often overlooked is the effect of commission drag. For a strategy to break even, it must have returns in excess of the total commissions; this can make or break a system. Commission drag is the cost of trading, and while it is unavoidable, it can be managed or […]
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Today we will consider an adage known as Goodhart’s Law and its relationship to trading strategies. Goodhart’s Law is often stated as: “When a measure becomes a target, it ceases to be a good measure.” It was originally intended as a criticism of Thatcher’s economics, but Goodhart’s Law is everywhere. I first came across Goodhart’s […]
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