BMAMS

Risk management is one of the most critical elements of successful trading system development, yet it is often overlooked or misunderstood. At its core, risk management is the art of balancing risk and reward, protecting funds from market volatility while maximizing profits.

WARNING: The recent demise of Silicon Valley Bank, a dominant force in the technology financing sphere, has sent shockwaves throughout the investment community, triggering a sense of apprehension regarding the potential for market instability and losses. The bank’s abrupt downfall has laid bare the vulnerability of the banking sector.

Unleashing the Power of Algorithmic Trading: How Data and Math Make Investing Safer and More Successful. In recent years, algorithmic trading has emerged as a dominant force in financial markets, attracting interest from investors and traders alike. One of the key reasons for its popularity is the safety and reduced risk it offers compared to manual human trading.

In the realm of financial markets, an undeniable trend has emerged – an inexorable shift towards the use of data mining for trading strategies. This is no mere fad, but a bona fide revolution in the way trading is done.

The future will reflect the past- but it won’t be the same as the past. By manipulating and changing the actual bar chart data of an instrument we can test how a system will go on a similar, but different version of history- an effort to make the past simulate the future.

This week we look at another Monte Carlo Analysis statistical tool- skipping and adding trades. Like last week’s trade re-ordering it is designed to stress test a system and give a more complete idea of the risk profile it is carrying.

bMAMS uses different statistical methods to demonstrate or prove that our trading systems will perform in a real, unknown trading environment.

Welcome to 2023 and Happy New Year! bMAMS has 3 New Year Resolutions we have made to ourselves and our clients.

When the USDJPY is looked at statistically, its volatility has increased 300+% from 2021. Underlying why this year was such a difficult market for many.

It has been mentioned often by market commentators about the difficult & volatile trading conditions in 2022. This is how the 2022 market looked graphically.