A picture is worth thousand words and it clearly is depicted with Silver’s case.
Thesis
Mostly a rally from the bottom to [click to continue…]
{ 0 comments }
Posts by author:
Nitin Gupta
An important question one always has is how much leverage one should use to trade trying to enhance returns.
An important point with leverage is that it is directly concerned with drawdowns in the equity curve. More is the leverage used and more would be the drawdowns.
Implied Volatility or VIX as commonly said can be one of the measures to decide on how much leverage to use. If the VIX is too low, that essentially means that the movements in the market would be very narrow. Trend Following models would not either work or would give lower returns.
Increasing returns is only possible through increasing leverage.
Leverage can be = (100/VIX).
If the current vix is around 20.88, then the leverage used should be = 100/20.88 = 4.8 times.
{ 2 comments }
Hi Everybody,
I have developed a system lately on basis of some propreitary indicators.
It trades intraday and i have tested it on Nifty Futures from 04/11/2009 to 31/09/2010.
The sharpe comes to around 11.02
Attaching the equity curve of the system
Attaching the trade sheet and few details of the system in terms of performance measurement.
https://spreadsheets.google.com/ccc?key=0At-JgLO1Bg7rdE1fbi1XZWxpcnJmalFLalpsckVCc0E&hl=en [click to continue…]
{ 0 comments }
Copper- long term chart
Pattern Formation : Double Top Broken
Copper has been able to cross all time highs made in mid of 2006 and 2008 which is a double top formation.
Targets : Based on Elliot Wave
Once it has breached this level,it has target of close to 550 and 825 on the charts.
{ 2 comments }
