Creative destruction (Also sometimes known as Schumpeter’s gale), is a concept of economics which is known primarily from Joseph Schumpeter who was an Austrian economist. The theory of creative destruction originally came from the writings... Read more
This is a Guest Post by: Colibri Trader @priceinaction Ray Dalio is an American billionaire who is a legend in the investing and hedge fund communities. He is the founder, CIO, and co-chairman of Bridgewater Associates, one of the major players... Read more
Moving averages are technical trading indicators for capturing trends. This post shows the backtesting data and system equity curve versus buy and hold using TrendSpider.com. This is the backtest based on buying $QQQ when the 5 day EMA crosses... Read more
The Sortino ratio is a way to measure the risk adjusted return of an asset, investment portfolio, or trading strategy. The Sortino ratio is an adjustment to the Sharpe Ratio that filters volatility from upside moves from downside moves. The Sort... Read more
Below are the stock holdings of publicly traded stocks held by Warren Buffett inside his Berkshire Hathaway portfolio as of September 30, 2019 based on the 13F filing on November 14, 2019 report that is filed with the Securities and Exchange Com... Read more
Simple interest is only calculated on the original amount of capital inside a set time period. It does not include the compounding effect of returns on new money accrued. Simple interest can be used over any time period but annual returns is the... Read more
A Monte Carlo simulation is a process used to show all the potential outcomes of a trading system, business model, supply chain, scientific theory, insurance, research and development, or a casino. A Monte Carlo simulation uses the most importan... Read more
The rule of 72 is a process for quickly projecting how long it will take for a rate of investment return to make capital double. The number 72 is used in figuring out the answer by dividing the rate of return percentage per period to get an appr... Read more
The Sharpe Ratio was developed it in 1966 by William F. Sharpe as a way to quantify potential risk in an individual investment or an investing method or trading strategy. The Sharpe Ratio is the defined difference of the returns between an inve... Read more
Inside probability theory, conditional probability is a way to calculate and measure the probability of some event happening if another event has already occurred. The Bayes’ Theorem is one way of calculating a probability of something occurring... Read more
