How This RANDOM Entry Beat The Market: The Tom Basso Coin Flip Proven and Explained

More free market research here: http://www.asxmarketwatch.com/2015/12/this-simple-indicator-smashes-buy-and-hold-returns/

Have you ever heard people say that a monkey with a dartboard can outperform the market? Although it's been quoted and requoted thousands of times, I believe it came from "A Random Walk Down Wall Street."

Van Tharp, in his book "Trade Your Way To Financial Freedom", outlined an experiment where he selected stocks at random - long and short - and used an ATR Stop with a 1% Risk Model (fixed fractional position sizing).

In this video I use the powerful tool, Amibroker, and 1000 different runs of 15 stock portfolios (Monte Carlo analysis) to see if, and how, this really works. The results will surprise you.

http://www.asxmarketwatch.com/

- Dave McLachlan
Money Management
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The ETR Comfort Ratio, a Better Way to Measure Return-to-Risk
Letter to Clients, Contacts, Friends Post 9/11/2001
Letter Tom Basso sent to clients, contacts, friends after September 11, 2001.
The ETR Comfort Ratio (Improved version with Thresholds)
This builds on the monthly ETR Comfort Ratio publish in 2018 by adding a Threshold for drawdown magnitude and time spent in a drawdown. Anything beyond those thresholds become discomfort and are accumulated. More robust way to use the ETR Comfort Ratio.
Volatility Feeds Profits in Futures Industry
Shows how volatility is what feeds profits in the managed futures industry. Should be similar in other markets as well.
Trading
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How This RANDOM Entry Beat The Market: The Tom Basso Coin Flip Proven and Explained
More free market research here: http://www.asxmarketwatch.com/2015/12/this-simple-indicator-smashes-buy-and-hold-returns/

Have you ever heard people say that a monkey with a dartboard can outperform the market? Although it's been quoted and requoted thousands of times, I believe it came from "A Random Walk Down Wall Street."

Van Tharp, in his book "Trade Your Way To Financial Freedom", outlined an experiment where he selected stocks at random - long and short - and used an ATR Stop with a 1% Risk Model (fixed fractional position sizing).

In this video I use the powerful tool, Amibroker, and 1000 different runs of 15 stock portfolios (Monte Carlo analysis) to see if, and how, this really works. The results will surprise you.

http://www.asxmarketwatch.com/

- Dave McLachlan
Timing The Market Makes More Sense Than Buy&Hold
Why you should consider timing the market, unlike what the many tell you.
BassoInterviewStocks&CommoditiesMagazine
Tom Basso's November 1993 interview by Thom Hartle in Technical Analysis of Stocks & Commodities magazine
The Value of Asset Allocation Combined with Rebalancing
Adding value to a portfolio with CTAs. Applies to many investments and trading as well.

This category of the research papers concentrates on papers that have been published over the years on either money management or trading topics.  They span decades of Tom Basso's life.