Mutual funds are probably the easiest way to invest for people without a financial background. Statista Research Department reported that “In 2019, 46.4% of the households in the United States owned mutual funds.”
First of all, what’s a mutual fund? “Mutual funds are investment funds managed by professional managers who allocate the funds received from individual investors into stocks, bonds, and/or other assets.” — Investopedia
This means the people behind mutual funds do all the work of research and analysis, while you just pay a small fee for their management. …
So, let’s get started.
In the Strategy panel, find the strategy you created and click the button “Test” to be redirected to the backtesting page. (Note: you can also backtest patterns, which we will cover in another part of this series.)
Since it’s the first time you’re executing a test, you can’t copy the configuration from a previous test, so we’re going to create a new one. Just press “Ok” on the following popup:
Backtesting has a lot of available settings to ensure accuracy, but for our first run, we’re going to leave the defaults for pretty much all of them. …
If you’re an investor or a stock trader, it’s no secret that algorithms have replaced regular investors in terms of volume.
Why algorithms? Because while a person can follow maybe 4 stocks at the same time, algorithms can follow thousands of stocks and respond faster than a blink of an eye. Furthermore, they are committed to a defined strategy without any emotion. Yes, trading can be very emotional. Poor execution due to involved emotions can cause traders with otherwise successful strategies to fail. …