Cards Flashcards
(151 cards)
1
Q
What is Trend Following?
A
-Buy on a positive Momentum and
sell on negative momentum
-This method makes money in trending markets and loses in ranging markets
2
Q
What is the Unbreakable rule?
A
Always an unavoidable risk you buy into a winning signal and still lose money
3
Q
What does the TPI tell you?
A
Buy high and sell higher
Sell Low and Buy lower
4
Q
A long and short is?
A
Long= Expecting price to rise
Short=Expecting price to fall
5
Q
What are the 5 W’s when looking for data?
A
Who,what,where,when,why
6
Q
True or false: we always use samples when looking at financial information
A
True
7
Q
How is Categorical data presented to you?
A
Names
8
Q
What is Linear and logarithmic scale?
A
Linear is equal distances on the axis
Logarithmic is compressed large values for a wide range to be covered
9
Q
What is a stationary Timeseries?
A
Generally oscillating sideways, containing a seasonal and random component
10
Q
What is a non stationary Timeseries?
A
Randomly unconstrained in various directions and contains a Trend, seasonal and random component
11
Q
What is Timeseries data?
A
Data of any measurement that’s occurring overtime
12
Q
What is a histogram?
A
A chart that gives frequency information for how often certain events occur in a data series
13
Q
What are the 6 possible histogram shapes?
A
Bell Curve, Right skew, left skew, uniform Distribution, uni-modal and bi-modal
14
Q
Where is the mean, median and mode in a right and left skew and a symmetric histogram?
A
Right skew-Mode, median, and mean going right
Left Skew- Mode, Median, Mean going left
-Symmetric has all 3 in the same spot
15
Q
What is the process for getting the SD using the measurement of variance?
A
1st- Square all measurements away from the center of distribution, creating variance
2nd- Then take the square root of variance giving us the SD
16
Q
What percentage of information is contained within 1 SD? 2 SD? 3 SD?
A
68%. 95%. 99.7%
17
Q
True or False: 1 Z-Score is equal to 1 standard Deviation?
A
True
18
Q
What is a Standard Deviation?
A
They tell us the Average Variability
19
Q
What is the Z-Score and its formula?
A
- A standardized measurement of the significance of variability
Z=X-U/SD
20
Q
Using a number, how correlated is a dot chart going up and right?
A
1 for perfect positive correlation
21
Q
Using a number, how correlated is a dot chart going left to right and downward?
A
-1 for perfect negative correlation
22
Q
Using a number how correlated is a dot chart with dots everywhere?
A
0 for uncorrelated
23
Q
What is a scatter plot?
A
A chart that reveals information about the relationship between 2 variables scaling from 1 to -1
24
Q
What is a regression?
A
A regression allows you to quantify the relationship between 2 variables and possibly make future price predictions
25
What’s the process of finding the perfect line through a set of data? And also ensuring it’s facing the right direction
1st- The sum of all the residuals will equal 0
2nd-squaring the residuals will endure your line is facing the right direction
26
True or false: Value and direction have a strong relationship?
False
27
True or False: Discretionary TA is Useful?
False
28
What is Sentiment Analysis and their 2 participants?
-Sophisticated and unsophisticated investors
-Using the uninformed lack of knowledge to take opposing positions in the market
29
What 3 factors are used when using statistical significance of repeating events?
-Frequency
-Magnitude of effect
-Outcome Ratio
30
What is On-Chain data?
Tells us how people act through looking at dates of transactions, size and where tokens are going
31
True or false: The crypto market is correlated to the overall economy
True
32
Put the following in order from highly profitable to least profitable: Inflation, reflation, Goldilocks, deflation
Goldilocks, Reflation, Inflation, deflation
33
What is the fundamental economics?
Supply and demand
34
How is the quality of an asset Measured?
Return divided by risk
35
How do you get beyond the efficient Frontier?
Tangent asset plus leverage
36
SD of -1, -2, and -3 are indicators of?
SD of 1, 2, 3 are indicators of?
Overbought and oversold
37
What ratio is the best for asset selection and why?
The Omega Ratio because it forms a theoretically perfect ratio of the probability density of positive and negative returns
38
What is the Hierarchy of time frames?
Analysis performed on a higher timeframe that occur over a long period of time take a precedence over analysis on lower time frames
39
Mean reversion is where you_____ Low and ______ High
-Buy
-Sell
-This method makes money in ranging markets and loses in trending markets
40
Trend following is taking____ large wins followed by multiple consecutive_____ losses
-Large
-Small
41
What are the 3 types of systemization for swing trading?
Manual Aggregation, algorithm development using TV strategies and python coding
42
What is time Coherence?
Selecting indicators and inputs for your strategies that are operating over the intended signal period
43
True or false: Seeing the TPI weaken or get stronger means it’s time to sell or buy
False
44
What is alpha Decay?
Reduction in performance of a strategy simply through the fact of existing
45
What is a bespoke timing Model?
A model designed to predict a single event
46
What is quantitative analysis?
Using Mathematical and statistical techniques to interpret data
47
What is qualitative analysis?
Research using non numerical data
48
What is the Kelly criterion?
A formula that calculates the theoretical optimum amount to wager on bet to maximize profit as a function on the probability of success
49
What is a capital gains tax event?
Triggers a potential tax liability on the profit made from selling or disposing of an asset
50
What is seasonality?
Average performance of an asset during a time period
51
Accumulation
Market phase where smart money buys their coins
52
ATH
All time High
53
Consolidation
A period where the price is chop in a well defined region, a period of indecision and generally leads to a volatile movement
54
Day Trading
Turning a large investment account into a smaller one
55
Correction/Pullback
A correction AKA Pullback is a reversion in price after a rally
56
Demand
The desire of investors to buy an asset
57
Downtrend
Price makes lower highs and lower lows
58
Distribution
Market phase in which smart money sells their shitcoins
59
Dump/Crash/Nuke
Price goes down rapidly
60
CEX
Online market phase which allows buying and selling of BTC and altcoins through a centralized company
61
DEX
Online Marketplace hosted on a blockchain which allows buying and selling of BTC and altcoins in a trust less manner
62
EV
Expected Value
63
Fade
To take a position that is counter to the current trend of a coin
64
Fiat
Currencies that have value because they are minted by a central bank
65
Flat/ Get flat
Too close out of a position and remain neutral
66
FOMO
Scared feeling of missing a long pump cause your not invested
67
FUD
Fear, uncertainty and doubt
68
Front Running
Taking a position based on a non-Public information like an insider
69
BTC Halving
Process which BTC mining rewards are reduced by 50%
70
HTF
High Time Frame
71
KYC
-Know your customer
-Verification of new customers when joining an exchange
72
Leverage
Extra Amount of asset bought or sold over your capital limit
73
Long/Going long/Long Trade
A buy order to open a position on perpetual futures
74
Liquidity
Measure of supply and demand, their is on the other books for a particular coin
75
Limit order
An order will execute at a pre-defined price
76
LTF
Low time frame
77
Liquidation
When you get stopped out of your position because the trade went in the opposite direction and your margins aren’t sufficient to carry the trade
78
Market Cap
Current supply X current Price
79
Market Order
An order to buy or sell at the current best price available
80
Margin/ Initial margin
Amount of funds required to open a leveraged trade
81
Maintenance margin
Amount of collateral value required to avoid a margin call. Liquidation happens if your balance falls below MM
82
Moon/ Mooning
When a coin rises sharply in value
83
OHLC
Open, High, low and close
84
Open Interest
Total number of derivatives contracts currently open for a particular asset
85
Overbought
Market price has Risen too steeply and too fast
86
Oversold
Market Price has declined too steeply and fast
87
P&L
Profit and Loss
88
Pump and Dump
Type of market manipulation where a market participant or several work together to inflate the price of an asset
89
Pump/ Rip
Price goes up rapidly
90
ROC
Rate Of Change
91
Rekt
Wrecked in the market
92
Rally
Upward trend leading to an increase in price of the coin
93
Range/ Ranging
Going up or down with no clear trend
94
Risk/ Reward
How much profit you stand to make per unit of risk
95
Scalping
Taking a position on a very short time frame
96
Seed phrase
Sequence of 12 or 24 random words to recover security wallet
97
Selling Off
Coin droppage and then thought of it continuing
98
Slippage
Difference between estimated fill price for a trade and then amount paid due to market conditions
99
Short/ Shorting/ Short Trade
Profit from price falling, a sell order to open a position on futures
100
Short Squeeze
Short positions being liquidated in the upwards direction
101
Spread
The difference between sellers price and buyers willing to buy at
102
Stable Coin
Cryptocurrency who’s value is pegged to another asset class like the US dollar
103
Support
- Area/Line where traders expect the price to hold above or bounce back back from
104
Volatility
Percentage movement in price of an asset over a specific time period
105
Whale
A trader who makes large transactions to manipulate the market
106
When TPI is above 0 You
Buy
107
When the TPI is above 0 and rising you
-consider increasing leverage
-Consider increasing beta
108
When the TPI is above 0 and falling you
-Be cautious and be ready to sell
-Consider cutting leverage and reducing beta and or raising cash
109
When TPI is below 0 you
Sell Crypto
110
When TPI is below 0 and falling you
Consider shorting crypto
111
When TPI is below 0 and rising
- Cover shorts
-Prepare to buy
112
Simple long term investing and SDCA are both
Mean reversion
113
Trend probability indicator and relative strength portfolio are both
Trend Following
114
Simple Long Term investing and SDCA Signals both use long term market valuation which means they
Buy low and sell high over years only making money when market goes up
115
What is Beta?
A metric that measures the volatility of an investment compared to the market
116
Bear Trap
Designed to trap sellers who think the price will continue to decline
117
Bull Market
A market where prices are in a continuous uptrend, leading to new highs
118
Bull Trap
Where price rises significantly during a bear market, tricking investors into buying before a larger decline
119
Bid/Ask
-A bid is a buy order
- An ask is a sell order
-Bid is the price someone wants to pay for an asset and an ask is the price someone wants it for
120
Breakout
A price Movement that moves past the upper and lower boundaries of a range
121
Chop
A period where the price is moving sideways with no clear direction
122
What is Volatility?
Rapid change and unpredictable movement of price
123
What is the EMH?
Markets are the most efficient mechanisms for pricing and information because people are incentivized for taking money away from you
124
What is a binary Signal?
A signal that tells you precisely when to act on something
125
What is Alpha?
Ability to produce abnormally good returns above a benchmark
126
What is a perpetual Signal?
A signal that will tell you when something is overbought and oversold
127
What are the 3 types of Information?
Leading, lagging and coincident
128
What is the Weak form of EMH?
Prices reflect all past market data
129
What is the semi strong form of the EMH?
Prices fully reflect all publicly known information meaning fundamental analysis won’t work
130
What is the Strong form of the EMH?
Prices fully reflect all publicly and private information, meaning insider trading won’t work
131
What is EMH?
A framework for understanding how competitive financial markets work
132
What is passive investing?
A portfolio designed to capture the highest possible upside beta with the lowest possible downside beta with minimal management
133
What is leading information?
Using historical and recent information it gives indication of what’s happening now and in the future
134
What is coincident Information?
Classifies historical and recent information and gives indication to what’s happening now but not the future
135
What is lagging information?
Can classify past information but does not give any indication to what’s happening now or in the future
136
What is the purpose of Altcoins?
Designed to make the creators money
137
When seeing Altcoins start to moon what’s the general meaning?
It’s the end of a bull market
138
What is non-systemic risk?
Risk that is inherent to the individual asset itself not the entire economy
139
What is systemic risk?
Having the entire economy blow up
140
True or false: Broad diversification in the crypto market is useful
False
141
142
What’s the max amount of cryptos to hold to receive the max benefit of diversification?
2
143
True or false: Crypto has a strong positive correlation to stocks
True
144
True or false: crypto has a strong negative correlation to the US Dollar
True
145
True or false: Btc has a positive correlation to the FED balance Sheet
True
146
147
True or false: During mean reversion you purchase at the oversold condition and sell when it reaches the mean?
True
148
During mean reversion your supposed to go from oversold to the mean?
True
149
Long entires come in which 2 forms?
Oversold conditions from a mean reversion system OR Positive trend conditions from a trend following system
150
Long Exits can come in which 2 forms?
Overbought conditions from a mean reversion system OR Positive trend
Conditions from a trend following system
151
