Analyzing Alpha

One of my goals here at Analyzing Alpha is to help new investors get their bearings. And one of the fastest ways to build knowledge and expertise about investing is to learn the

Quantamental refers to an investment strategy that combines quantitative approaches using computers, mathematical models, and big data with fundamental methods that analyze individual company cash flows, growth, and risk to generate better risk-adjusted

The risk-reward ratio measures the potential profit for every dollar risked. It is the ratio between the value at risk and the profit target. For example, if you buy a stock for $10

A stop-loss order protects profit or limits risk on an investor’s open position by exiting at a predetermined price. Placing an order to sell a long stock position if the price drops 5%

This year has come and gone, and that means Analyzing Alpha is one year old.

Have you ever heard someone on TV saying that a politician or policymaker was being “too hawkish” or “too dovish”? Maybe you know that means something about their views on the money supply,

Getting into investing and trading can be exciting. It can be rewarding. And if you’re like me, it can be an obsession. But I’m the first to admit that the terminology can get

Sector momentum is a sector rotation strategy aimed at boosting performance by ranking sectors according to their momentum and buying the top performers and selling the laggards.

Stanley Drukenmiller achieved over 30% returns for three decades without a single down year. He often stated, “The best economist I know is the inside of the stock market. I’m not that smart,

I thought it would be interesting to create a visualization showing the top 10 cryptocurrencies over time. The market is incredibly volatile, with new technology disruption occurring almost daily. You can see this

Stocks have outperformed t-bills, t-bonds, and gold over the 5, 10, 30, 40, and 50 year periods ending 2018. Stocks only underperformed gold in the prior 20-year period due to the great recession.

Only one in five day traders is profitable. Algorithmic trading improves these odds through better strategy design, testing, and execution.