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Building wealth investing in indices

I have been researching strategies to invest money for my retirement in a smart way, that does not take a lot of time and does not keep me up at night. After many, maybe hundreds of hours I finally came up with a very simple strategy. In this video I show you what my back tests are showing. I am working on an e-book in which I will explain in detail how the strategy can work for you and how I use it to build up wealth of my own. Let me know in a comment if you are interested in the e-book. It will motivate me to get it out sooner rather than later.

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Monte Carlo simulation and trade optimization

I have hooked my Oanda FxTrade account to MyFXbook.com. I have done so to have my trade record verified, but I also use it for after trade analysis and trade optimization. Today I will share one of the ways I use to optimize my trading.

Start of my trading strategy

By default my myfxbook trading account shows trading performance unfiltered. And that is the way it should be, because that is my actual performance. However I started consistently trading the strategy that I currently still trade as of march 2015. From that moment on I consistently applied my strategy daily and now it is a daily routine. So to see my performance as of that moment I will apply a filter, that filters out all trades made before March 2015.
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Pair trading indices: shorting the AEX

Pair trading
Pair trading

I am Dutch and I know from first hand experience that the Dutch economy is an open economy. When world trade slows down this immediately effects the Dutch stock exchange. Although this sounds like a bad thing, I figured this could also be used as a sort of counter balance in a pair trading strategy.

Below are some graphs of my exploration of this idea.
The idea is to sell short on the AEX index and buy different other indices.

Short: blue line
Long: green line
Difference: red line

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