Dates: From 04/12/2021 to 04/18/2021
Duration: 1 week
Price: € 130PresentationWe have proposed, among other goals, to publicize the techniques that hedge funds use and that the small investor does not know. The legend says that they are very complicated and that the individual cannot follow them, but that is not true. One of these tactics is spreads.
This course will allow you to work in the market in a different and very profitable way. Parallel hedge is one of the most common tactics. Why not use it too?
Most analysts and traders spend their time looking for market tops and bottoms with the resulting results in their portfolios, Warrent Buffett stated long ago that you should not waste time predicting the direction of the market. Following this statement and taking it as the main axiom, hedge funds and automatic trading systems have broken into the market, forgetting about the traditional model of “market timing” that has led to such poor results for the portfolio of traditional equity funds to dedicate themselves to “stock picking”. Risk is transferred, time passes, trying to predict market movements, to the appropriate selection of assets looking for market inefficiencies.Addressed toInvestors seeking diversification in their investment strategies in the Financial Markets.
Investors who want to design and advance new Trading methodologies based on strength and volatility.
Individual traders and managers who want to actively manage their positions, adapting them to Market Timing, the level of leverage of each of the specific products and that of their own portfolios.
Managers interested in knowing arbitrage strategies as investment and hedging elements.
Intraday traders and investors who want to improve their strategies and who want to design and advance new methodologies.objectiveThe objective of the course is to obtain the alpha inherent in listed instruments on a recurring basis, using risk-weighted strategies in order to create portfolios of securities, or pairs of securities with betas close to 0. With Long / Short strategies we will combine long positions and short on stocks, ETFs, Futures or CFs. Portfolios can vary from Long net to short net, depending on market conditions. Long exposure will increase when markets are on the rise, while short positions are geared towards generating positive returns and acting as a hedge against declines in equity returns.Show the end investor new trading, investment and hedging models.
Learn to obtain the alpha of products regardless of the evolution of the markets to which they belong.
Learn to use strategies reserved for hedge funds.
Learn to trade side markets.TemarySpread Theory
1. Introduction to SpreadsDefinition, Characteristics and Advantages2. Construction of a SpreadMethod types3. Types of SpreadsStock spreads: Between correlated stocks (same sector); Between uncorrelated stocks (different sector)Indices & Stock Spreads: Index vs Stocks; Indices vs Indices4. Analysis of SpreadsMoment analysis
Technical analysis5. The Bid / ask fork. Spreads Settings:Basic
With volatility and currency effectPractice Spreads with Indices / CFDs / Futures / ETFs (2 hours)
1. Construction of a spreadExample with dax / mib
Spread & ratio indicator
ETF Example: Basic Ratio; Atr-weighted ratioFutures / CFD ExampleBasic ratio
Ratio weighted by attr / currency2. Types of spreadsArbitrage Between Major Indices
Arbitrage between sector indices
Arbitrage between major and industry indices
Arbitrage between indices and components3. Entry / exit strategiesWhere to start the spread? Set the pivot point of the market / instrument. Low volatility indices. In lateral movement
Technical analysis applied to the spread & ratio indicator4. SettingsStop loss
Sizing5. Intraday Trading:Charts from 1 to 60 minutesPractice Spreads with Stocks (2 hours)
1. Construction of a spreadExample with banks
We consider country, sector, currency, and the company itself2. Where to start the spread? Set the pivot point of the market / instrument.
3. Arbitration between correlated stocks (same sector)Oil companies
Automobiles4. Arbitrage between uncorrelated stocks (different sector)Pharmacy, food
Luxury, retail5. Arbitrage between volatile and less volatile stocksDow Jones vs. Nasdaq 1006. Tracker values exceed highs (long) and values that lose lows (short).
7. SettingsStop loss
Sizing8. Intraday Trading:Charts from 1 to 60 minutesObservationsThe course lasts 1 week in which the student and the teacher are in contact at all times.
The structure of the course is as follows:The students will have the complete documentation in PDF format, so that they can have it printed at the time of class and it will be easier for them to follow it.
On Tuesday there will be an online session from 8pm to 10pm, in which the slides corresponding to the current week will be explained in depth and practical examples of all the concepts studied will be given.
This session will be recorded and posted in the virtual classroom. In this way, if a student missed a live session or wanted to watch it again, they could do so at any time.
On Wednesdays the student must study the weekly documentation. All doubts that may arise must be exposed in the "forum of doubts".
On Thursday there will be another Online session from 8:00 p.m. to 10:00 p.m., in which all the doubts published in the forum will be resolved and work will be done on the design of a Trading Journal and the analysis through Excel sheets of the main Monetary Management strategies studied in the course.
The rest of the week the student can use it to work on the documentation and the "optional" practical exercises that will be made available to them. Any questions should be asked through the "Forum of doubts".
During the week all doubts raised through the forum will be resolved, so that all students can see them and learn from them.
Students will have a chat to communicate with other students while the course is active.
Instituto BME will issue a certificate of having been enrolled in the course to all participants. In the event that you want to obtain a certificate of achievement of the course, you must pass a short test.On the Friday of the week before the start of the course, you will receive by email the password to access the classroom where you can download the course documentation and an explanatory document on how the platform works.