Parameter Sensitivity is one of the best tools in quantitative trading.
But 99% of traders don't understand it.
Here's how it works explained simply so you can build better strategies:
One technique that has helped me create 6-figure trading strategies:
Monte Carlo Simulations.
But what is it? and how do you do the same?
Here's everything you need to know (explained simply):
FINANCIAL GRAVITY:
If we divide the performance of the S&P 500 by the Fed’s Balance Sheet since the GFC, the LINE IS FLAT.
This means that there has been basically NO REAL growth in stock prices since 2008- with the only rise in prices due to money printing.
The correlation coefficient between central bank quantitative easing and the price of stock indexes is nearly 1.
The money printed by the Fed, because of the structure of the Open Market Operations, is plugged directly into the Treasury markets, and from there, flows into equities and derivatives.
This has served to primarily enrich the asset owners, financial institutions, and wealthy elites who own the majority of the stock market anyways.
The entire rally has been an illusion, financed by the Fed and maintained through QE.
In the black expanse of space, many things are not what they seem.
"The Art of Stock Picking" is the best speech that Charlie Munger ever gave.
He explains how an investor can beat the stock market.
The 20-page transcript is a treasure trove and a must-read for all.
Today, we're sharing the key points and the full speech:
@pinchebarbon_ Noruega se ha distancado de Israel y sus crimes, entonces es incorrecto decir que Noruega les apoyan/suportan. De hecho Noruega esta apoyando los Palestines con ayuda de emergencia
@wolfaltcoin Been struggling with Long Covid for 2yrs+, lost employment and bedbound for a majority of the days. Tho finding motivation in the crypto community and FinTwit 💪