A Step by Step Guide Video Series to Portfolio Construction for Price Followers -Part 2 – Automating the System

Part 2 of a video series that describes the process that we undertake to construct powerful robust systematic portfolios for the Price Follower in the FX/CFD retail trading environment. This video discusses the automation stage of strategy development that follows on as a workflow process after a system has been selected that obeys the fundamental

Basics of Portfolio Construction for Price Followers – Introduction Part 1 – Classifying the Nature of your Strategy

While many traders feel that diversification can be applied to all trading strategies…the bottom line is that it doesn’t quite work like that. The first thing we need to do is appreciate the difference between price following versus predictive methods. You may hear professionals talking about divergent or convergent strategy classifications in a similar manner. We feel that

Creating a Powerful Portfolio Blend from Scratch – Part 3

Part 3 which is the final installment of this series focuses on fine tuning the portfolio and adding realism to the backtest results. Before we can pluck the courage up to launch into our live trading following our exciting back-test results, now comes the time to remove any bullish euphoria and focus on the reality of live trading. We do this to dampen our expectations and ensure our risk weightings are correctly applied for live conditions. This is where the brutal reality of the frictional costs of trading need to take center stage….as we inevitably incur additional costs to that anticipated from our back-tests attributed to the realities of live trading.

Creating a Powerful Portfolio Blend from Scratch – Part 2

In Part 1 of our 3 Part article titled “Creating a Powerful Blend from Scratch”, we commenced the portfolio optimization process by selecting our primary system upon which we would then apply diversification principles across instruments and asset classes to achieve a bigger bang for buck in terms of risk-weighted returns for our finite investment capital. Part 2 of this installment article focuses on how we go about this blending exercise.