Tag: trading strategy

The Secret to Shorting Stocks

This post contains affiliate links. An affiliate link means Blackarbs may receive compensation if you make a purchase through the link, without any extra cost to you. Blackarbs strives to promote only products and services which provide value to my business and those which I believe could help you, the reader. Misinformation is everywhere. Many people believe the key to successful short selling is simply the inversion of a successful long strategy. I also used to believe this, among other short

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Introducing the Take Profits Strategy Subscription

Before I address the topic of this post, I want to provide a little background context for the new initiatives of Blackarbs. If you want to skip to the offer just click this link. The Beginning I started my career in finance, fresh out of college in 2008/2009, at a proprietary trading shop. At that time, I had very little experience trading, but due to the referral of a good friend, in combination with my background in low-stakes no-limit hold-em poker, I was able to land the job. It was an e

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Mixture Model Trading (Part 5 - Algorithm Evaluation with pymc3)

Post Outline * Recap * Chapter Goals and Outline * Links * Embedded Jupyter Notebook Recap See <Mixture Model Trading (Part 1, Part 2, Part 3, Part 4, Part 5, Github Repo)>. This research demonstrates a systematic trading strategy development workflow from theory to implementation to testing. It focuses on the concept of using Gaussian Mixture Models as a method for return distribution prediction and then using a simple market timing strategy to take advantage of the predicted asset retu

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Implied Volatility Skew Strategy Mid-Week Update Using Python (2/03/2016)

To see this weekend's prediction click here. Overall this strategy has been impressive in its trial run over the last 4.5 weeks. I figured, given the volatility and uncertainty in the broad markets this week I'd like to see a mid-week update of the strategy using Python and the BarChart OnDemand API. To see my original article on the basics of using the BarChart OnDemand API click here. First I import the basic modules needed to execute the script: From there I define a couple convenience fun

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The Return

It's been a while since I've updated the blog and with good reason. Like any worthwhile business the foundation on which it's built must be thoroughly researched, well planned, and ruthlessly executed. With that in mind, I've been away building other pieces of the foundation which I will be unveiling over the next week or so. Be on the lookout for the upcoming BlackArbs flagship product titled the "iVC Report" (Identify Value Creators). This report is designed to assist retail and professional i

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Is Trading the FED's POMO Schedule Profitable?

I often consider the market's distortions that are or can be created by its participants. Arguably, the most important market player is the Federal Reserve. For years the FED as been injecting liquidity into the financial system through its Permanent Open Market Operations (POMO). I'm not going to delve into the purpose of these multibillion dollar transactions as others have covered this extensively. Instead I ask a simple question. The FED makes their tentative POMO schedule public beforehand.

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