Backtest Trading Strategies like a real Quant


R is one of the best choices when it comes to quantitative finance. Here we will show you how to load financial data, plot charts and give you a step-by-step template to backtest trading strategies. So, read on…
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The Rich didn’t earn their Wealth, they just got Lucky


Tomorrow, on the First of May, many countries celebrate the so called International Workers’ Day (or Labour Day): time to talk about the unequal distribution of wealth again, so read on!
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Inverse Statistics – and how to create Gain-Loss Asymmetry plots in R


Asset returns have certain statistical properties, also called stylized facts. Important ones are:

  • Absence of autocorrelation: basically the direction of the return of one day doesn’t tell you anything useful about the direction of the next day.
  • Fat tails: returns are not normal, i.e. there are many more extreme events than there would be if returns were normal.
  • Volatility clustering: basically financial markets exhibit high-volatility and low-volatility regimes.
  • Leverage effect: high-volatility regimes tend to coincide with falling prices and vice versa.

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