This week’s topics
Technical Trading Strategies in Practice
- Breakout, trend-following, and mean-reversion trading systems
- Algorithmic execution, high-frequency trading, and quantitative models
- Strategy backtesting, slippage, and performance metrics (win rate, profit factor)
- Critiques and limitations of technical analysis in semi-strong efficient markets
- Costis Maglaras: High-Frequency Trading
What you will be able to do
- 2.3 Assess how technical analysis strategies are used in practice.
Activity
Start with this week’s video, then: Seminar, guided reading and a short written task: assess how technical analysis strategies are used in practice.
Study materials
Videos
- Costis Maglaras: High-Frequency Trading · YouTube · Columbia Business School · 21 min · for registered students
- Mean Reversion: Statistical Fact or Dangerous Delusion? · YouTube · Aswath Damodaran · 24 min · for registered students
- Session 32: Market Timing Approaches - Mean Reversion & Macro Fundamentals · YouTube · Aswath Damodaran · 19 min · for registered students
- Session 32 (of 42): Market Timing - Mean Reversion and Macro Fundamentals · YouTube · Aswath Damodaran · 16 min · for registered students
Further resources
- Money and Banking, ch. 7: Rational Expectations, Efficient Markets, and the Valuation of Corporate Equities · PDF · Saylor Academy, textbook chapter; pp. 131–156 · for registered students
- MIT 15.401 Finance Theory I, lecture notes: Efficient Markets · PDF · Other, slides · for registered students
Materials marked “for registered students” open in the student portal, which is set up as soon as you receive final acceptance.
