Quantitative Technical Analysis from edX

Quantitative strategies are popular among hedge funds and institutional investors. As demonstrated in this course, they are also readily accessible to individual traders.

Fundamentals principles of technical analysis are incorporated into complete trading strategies during the course. Those strategies are objectively defined with an eight-step process that is used to create entry and exit rules. Less well-known aspects of system design including position sizing are also explored.

Discussion of strategy implementation includes risk management, system optimization and ongoing performance evaluation. Advantages and disadvantages of multiple methods of evaluating performance and risk are covered.

Strategies for equities and futures markets are developed using the design principles.

While systems are based on technical analysis, a process for incorporating fundamental data is also discussed. A complete strategy combining fundamental data and technical analysis is developed and as with other systems, the rules and historical returns are detailed.

In fact, complete rules for several systems are provided and detailed historic results of returns and risks are analyzed. Steps for improving performance or tailoring the strategy to suit an individual’s needs are reviewed.

What you'll learn

● Discuss the definitions of subjective and objective analysis and review how the different types of analysis can be incorporated into trading decisions.

● Apply the principles of objective analysis to market data to understand the design of investment trading systems.

● Develop complete trading strategies including entry and exit rules, position sizing strategies and risk management techniques.

● Analyze the historic performance of trading systems in terms of potential rewards and risks.

● Review how quantitative trading systems can be adapted to suit an individual’s personal needs.

What's inside

Syllabus

Mod01 - Subjective vs Objective Analysis

Mod02 - Algorithmic Trading

Mod03 - Position Sizing

Mod04 - Implementing Quantitative Technical Analysis Strategies

Traffic lights

Read about what's good

what should give you pause

and possible dealbreakers

Introduces objective analysis, a technique common amongst hedge funds and institutional investors, to individual traders

Provides a step-by-step process for designing quantitative trading strategies

Covers advanced concepts like position sizing, risk management, and performance evaluation

Emphasizes risk management, highlighting its importance in the financial markets

Illustrates trading strategies using real-world examples, making them relatable and practical

Demonstrates how quantitative trading systems can be customized according to personal risk tolerance and trading style

Reviews summary

Practical quantitative analysis for trading systems

According to students, this course offers a solid foundation in quantitative technical analysis, proving particularly valuable for those seeking to develop and implement objective trading strategies. Learners frequently commend the instructor's ability to clearly explain complex concepts and provide practical examples, making intricate topics like position sizing and risk management accessible. While many appreciate the insights into specific strategies like the Turtle Strategy, some express a desire for more in-depth programming implementations or note that the course assumes some prior financial market understanding, which could pose a challenge for absolute beginners.

Specific trading strategies are well-detailed and practical.

"The Turtle Strategy module was a standout. I'm already applying some of these principles to my portfolio."

"The module on Seasonal Concepts was particularly eye-opening."

"The course provides complete rules for several systems and detailed historic results of returns and risks are analyzed."

Complex concepts are made understandable by the instructor.

"The instructor is knowledgeable and presents the material in an understandable way, even complex topics like position sizing."

"The material is well-organized, and the instructor clearly has real-world experience."

"Absolutely phenomenal. This course demystifies quantitative analysis and provides a clear roadmap..."

Equips learners with actionable methods for trading.

"This course provided a fantastic deep dive into quantitative strategies. I particularly appreciated the practical examples and the clear explanation of how to design entry and exit rules."

"I learned how to develop complete trading strategies including entry and exit rules, position sizing strategies and risk management techniques."

"It teaches you not just *what* to do, but *how* to think about designing, testing, and managing quantitative strategies."

Strong principles, but limited hands-on coding depth.

"I felt some sections could have gone into more advanced programming implementations, but for principles, it's excellent."

"I found some parts a bit too theoretical for my taste, and I was hoping for more hands-on coding examples to build the systems."

"While the course provides 'complete rules for several systems', actual implementation details could be more robust."

Learners benefit from existing finance or market understanding.

"It's best if you have some basic financial market understanding."

"I found this course quite challenging and felt it assumed more prior knowledge than I possessed."

"As a beginner in quantitative trading, I struggled to keep up with some of the more advanced concepts..."

Activities

Be better prepared before your course. Deepen your understanding during and after it. Supplement your coursework and achieve mastery of the topics covered in Quantitative Technical Analysis with these activities:

Review Basic Statistical Concepts

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Strengthen your understanding of basic statistical concepts, which are essential for analyzing financial data.

Browse courses on Statistics

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Review notes or textbooks covering topics such as descriptive statistics, probability, and hypothesis testing
Solve practice problems to reinforce your understanding
Apply statistical concepts to analyze simple financial datasets

Read Technical Analysis of the Financial Markets

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Gain a strong theoretical foundation in technical analysis, providing a comprehensive overview of the key concepts and techniques.

View Intermarket Analysis on Amazon

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Read Chapter 1-5: Introduction to Technical Analysis, Chart Patterns, and Trend Analysis
Complete practice problems and exercises from each chapter
Summarize key concepts and create a study guide

Organize Course Materials and Resources

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Maximize your learning by organizing and reviewing course materials.

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Create a dedicated folder or notebook for course materials
Organize materials by module or topic
Review materials regularly and highlight important concepts

Five other activities

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Solve Technical Analysis Practice Problems

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Reinforce your understanding of technical analysis concepts by solving a variety of practice problems.

Browse courses on Technical Analysis

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Access online practice problems or textbooks
Solve 20-30 practice problems covering different technical indicators and chart patterns
Review your answers and identify areas for improvement

Watch Tutorials on Algorithmic Trading Strategies

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Gain practical insights into algorithmic trading strategies through guided tutorials.

Browse courses on Algorithmic Trading

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Identify reputable online platforms or instructors offering algorithmic trading tutorials
Watch 5-7 video tutorials covering different algorithmic trading concepts and strategies
Take notes and summarize the key takeaways

Participate in Simulated Trading Competitions

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Test your trading strategies and compete against other learners in simulated trading competitions.

Browse courses on Portfolio Management

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Identify and join reputable simulated trading platforms
Develop and implement a trading strategy
Monitor your performance and make adjustments as needed
Compete in multiple simulations to gain experience and improve your skills

Develop a Trading Journal

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Enhance your self-awareness and trading discipline by creating a comprehensive trading journal.

Browse courses on Trading Psychology

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Set up a spreadsheet or notebook for tracking trades
Record details of each trade, including entry and exit points, profit/loss, and rationale
Review your trading journal regularly and identify areas for improvement
Make adjustments to your trading strategies based on your observations

Contribute to Open-Source Trading Projects

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Gain hands-on experience in algorithmic trading and contribute to the open-source community.

Browse courses on Quantitative Trading

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Identify open-source trading projects on platforms like GitHub
Review the project documentation and identify areas where you can contribute
Make code contributions or provide feedback on existing code
Engage with the project community and learn from other contributors

Career center

Learners who complete Quantitative Technical Analysis will develop knowledge and skills that may be useful to these careers:

Quantitative Analyst

Quantitative Analysts are responsible for developing, implementing, and updating mathematical and statistical models to analyze complex financial data and make investment decisions. This course will provide you with the knowledge and skills needed to apply quantitative methods to technical analysis. It will help you understand the principles of objective analysis, learn how to use data to create trading strategies, and learn how to manage risk. These skills are essential for a successful career as a Quantitative Analyst.

See salaries and explore the career path for Quantitative Analyst

Financial Analyst

Financial Analysts use quantitative and qualitative techniques to analyze financial data and make investment recommendations. This course will help you build a foundation in quantitative analysis, which is essential for success in this role. You will learn how to analyze financial data, develop trading strategies, and manage risk. This course will also provide you with the knowledge needed to pass the Chartered Financial Analyst (CFA) exam.

See salaries and explore the career path for Financial Analyst

Investment Banker

Investment Bankers provide financial advice and services to corporations and governments. This course will give you the knowledge and skills needed to understand the financial markets and make sound investment decisions. You will learn how to analyze financial data, develop trading strategies, and manage risk.

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Portfolio Manager

Portfolio Managers are responsible for managing investment portfolios for individuals and institutions. This course will provide you with the knowledge and skills needed to manage a portfolio effectively. You will learn how to analyze financial data, develop trading strategies, and manage risk.

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Risk Manager

Risk Managers are responsible for identifying, assessing, and mitigating risks for organizations. This course will provide you with the knowledge and skills needed to understand and manage risk. You will learn how to analyze financial data, develop trading strategies, and manage risk. This course will also help you prepare for the Professional Risk Manager (PRM) certification.

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Financial Advisor

Financial Advisors provide financial advice and guidance to individuals and families. This course will provide you with the knowledge and skills needed to become a successful Financial Advisor. You will learn how to analyze financial data, develop trading strategies, and manage risk. This course will also help you prepare for the Certified Financial Planner (CFP) certification.

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Trader

Traders buy and sell financial instruments for profit. This course will give you the knowledge and skills needed to become a successful Trader. You will learn how to analyze financial data, develop trading strategies, and manage risk.

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Data Scientist

Data Scientists use data to solve problems and make decisions. This course will provide you with the knowledge and skills needed to become a successful Data Scientist. You will learn how to analyze data, develop trading strategies, and manage risk. This course also provides you with the skills needed to pass the Professional Data Scientist (PDS) certification.

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Software Engineer

Software Engineers design, develop, and maintain software systems. This course will provide you with the knowledge and skills needed to become a successful Software Engineer. You will learn how to develop trading strategies and manage risk.

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Quantitative Researcher

Quantitative Researchers develop and implement quantitative models for financial institutions. This course will provide you with the knowledge and skills needed to become a successful Quantitative Researcher. You will learn how to analyze financial data, develop trading strategies, and manage risk.

See salaries and explore the career path for Quantitative Researcher

Statistician

Statisticians use statistical methods to collect, analyze, and interpret data. This course will provide you with the knowledge and skills needed to become a successful Statistician. You will learn how to analyze data, develop trading strategies, and manage risk. This course will also help you prepare for the Associate Statistician certification.

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Actuary

Actuaries use mathematical and statistical methods to assess risk and make financial decisions. This course will provide you with the knowledge and skills needed to become a successful Actuary. You will learn how to analyze data, develop trading strategies, and manage risk. This course also provides you with the skills needed to pass the Associate Actuary certification.

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Financial Planner

Financial Planners develop and implement financial plans for individuals and families. This course will provide you with the knowledge and skills needed to become a successful Financial Planner. You will learn how to analyze data, develop trading strategies, and manage risk. This course also provides you with the skills needed to pass the Certified Financial Planner certification.

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Economist

Economists study how economies work. This course will provide you with the knowledge and skills needed to become a successful Economist. You will learn how to analyze data, develop trading strategies, and manage risk. This course also provides you with the skills needed to pass the Certified Economist certification.

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Market Researcher

Market Researchers conduct market research to gather information about products, services, and customers. This course will provide you with the knowledge and skills needed to become a successful Market Researcher. You will learn how to analyze data, develop trading strategies, and manage risk. This course also provides you with the skills needed to pass the Certified Market Researcher certification.

See salaries and explore the career path for Market Researcher