Strictly for educational and illustrative purposes
In an earlier posting, I have developed a preliminary equity rating scorecard. In this subsequent posting, I intend to refine this scorecard and continue to test & refine it over the next 12-18 months. It is very important to reiterate the point that an equity rating scorecard does not “predict” the future target price of a security. It is merely a simple high-level tool / framework / weightage system which serves to harmonise different perspectives / factors that may potentially affect the share price of a security. The end final score / rating does not mean anything (seriously). I personally look at the final score / rating as higher probability of the security hitting my target price or stop loss.
Continue reading “The Five Factors Equity Rating Scorecard”
I am NOT an expert in crypto currencies. I do NOT intend to be one. I do NOT invest / trade in what I do NOT understand. However, I am really curious to find out more about Bitcoin (BTC) from a statistical viewpoint.
Continue reading “Renminbi & Bitcoin”
Have you ever come across a trading idea that you are not 100% convicted about it? I do feel it this time. Nevertheless, I choose to share this simple trade idea in order to give a more balanced and realistic view of the world of trading / investment. It is a world filled with contradiction, unpredictability and randomness.
Continue reading “A Not So Convicted Trade Idea”
In one of the earlier posts (see this ), Malaysian-listed printing specialist, Tien Wah Press Holdings Berhad was one of the illustrative “buy signal” results extracted based on rules-based algorithmic screening process. Let’s dig deeper into this security. Continue reading “Digging Deeper”
Using R-programming, for the purpose of illustration, I am customising a mean reversion trading strategy which involves the use of z-score:
- z-score >2.25: overbought (“sell signals”)
- z-score<-2.25: oversold (“buy signals”)
High-level visualization of the proposed trading strategy (using OKA Corporation as an example):
There may be a number of trading signals that have been generated based on the above set of rules. However, the number of trading actions (i.e actual buy or sell transaction) may be far less if it is assumed that one does not buy what one already owns, as well as one does not sell what one does not have. Moving forward, there is a need to (i) back-test this strategy; (ii) benchmark against other trading strategies; and (iii) optimization of this trading strategy.
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In an earlier posting, I have customised a multi-indicators trading system that will generate BUY signals upon triggering of certain conditions. Let’s flip the conditions like a mirror and amend the coding to generate SELL signals instead.
Continue reading “The Opposite Signal”