In the previous article of the series Game-theoretic optimal strategy, the concept of optimal play was introduced and illustrated solving a toy game. In this article, we are tackling a more complex game called heads-up ...
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Machine learning applied to financial markets: moving average crossover prediction
The ecosystem of trading in financial markets hosts a variety of strategies that, depending on the inefficiency that they try to exploit, are amenable of being included in some of the primary categories. One of ...
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Game-theoretic optimal strategy (I)
Game-theoretic optimal strategy is a subject of game theory that has become popular in the poker community in the last years. The term optimal may lead to confusion as it can give to understand that ...
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Taking partial profits
We saw in the article Trading misconceptions (ii): Spreading out trades the cost of opportunity of splitting the entries. Now, we are going to explore the same strategy but applied on the profit target, commonly ...
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El timing en la fiscalidad
En materia fiscal es habitual divagar sobre progresividad del sistema, el valor de los tipos marginales, o la justificación de determinados impuestos, entre otros. Sin embargo, un aspecto que suele pasar desapercibido es el impacto ...
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Trading misconceptions (II): Spreading out trades
The first article of the serie Trading misconceptions analyzed a technique very popular within the trader’s community. The technique discussed in this article is even more popular, in fact, it is considered as one of the mainstays ...
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Optimal trade size
Suppose you have learned or designed an EV+ strategy thoroughly tested which satisfy all the requirements to be considered the core of a winning system. You might think you are now ready to trade; you have clearly defined ...
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Trading misconceptions (I): Moving stop loss to break even
This is one of the most popular trader’s strategies to manage opened trades. The reason of the popularity of this strategy has to do with the psychological aspect; risk aversion is inherent to human being and therefore it ...