Strategies

Gap and Go Trading Strategy Explained How traders identify stocks that gap up at open on high volume and ride momentum continuation rather than fading the move—with entry triggers, targets, and failure conditions.

Gap-Up Days and Momentum Follow-Through How gap-up days on earnings or news often continue trending in the same direction, and what this means for position management and timing.

GARP GARP (Growth at a Reasonable Price) is a hybrid investing strategy that seeks companies with above-average growth prospects trading at valuations that are not absurdly expensive relative to that growth.

Genetic Algorithm Optimization Using evolutionary search methods to automatically discover and refine trading rules by treating potential strategies as populations of candidates.

Geographic rotation Geographic rotation is a tactical strategy of shifting portfolio allocation between geographic regions based on economic growth, valuation, and currency forecasts.

Glide Path Portfolio A portfolio strategy that automatically shifts from growth assets toward stability as a target date or retirement approaches, reducing risk exposure over time.

Glide Path Rebalancing A systematic plan to gradually shift portfolio allocation from growth-oriented equities toward safer bonds as an investor approaches a target retirement or goal date.

Global Market Portfolio A passive strategy holding all investable assets worldwide in proportion to their market value as the baseline for portfolio construction.

Graham Number Strategy A mechanical valuation ceiling combining earnings and book value via Benjamin Graham's square-root formula, setting a maximum safe buy price.

Growth at a Reasonable Price A hybrid strategy blending growth and value criteria to capture earnings expansion without the premium valuations of pure-growth stocks.

Growth at a Reasonable Price (GARP) Growth at a reasonable price (GARP) investing blends growth stock selection with value discipline, using metrics like PEG ratio to avoid overpaying for earnings growth.

Growth investing Growth investing is a strategy of buying stocks with above-average earnings growth prospects, betting that the market will eventually reward the company's expanding profits with a higher valuation.

Growth Investing in a Rising-Rate Environment How rising interest rates compress valuations of growth stocks with long-term cash flows and distant profits.

Growth Stock Reversion After an Earnings Miss What happens to growth stocks after earnings miss: examining the typical price behavior and recovery timeline for high-multiple growth stocks following negative surprises.

Growth to Value Rotation Triggers Interest-rate and earnings-cycle signals that precede sustained shifts from growth-oriented to value-oriented stocks.

Growth Trajectory Trading Buying companies executing on a long-term growth plan and holding through expansion phases.

Hidden Asset Value Strategy A hidden asset value strategy uncovers undervalued real estate, patents, and deferred tax assets not shown at fair value on the balance sheet.

Hidden Champion Investing Seeking profitable, niche-market leaders that are overlooked because they're small, unglamorous, or outside the focus of large institutional analysts.

High Dividend Yield vs Value Trap How to distinguish genuinely cheap high-yielders from dividend traps likely to be cut using payout ratios, free cash flow, and leverage metrics.

High Short Interest Momentum A momentum effect amplified by short squeezes: stocks with heavy short interest that begin rising can accelerate sharply as short sellers cover positions.

High Volatility Capture Systematic strategy that increases asset allocation and leverage during periods of elevated market volatility to capture excess returns.

High-Frequency Trading Explained High-frequency trading uses microsecond latency and co-location to exploit tiny price discrepancies at scale; it is practically inaccessible to individual traders.

High-yield investing High-yield investing is a strategy focused on stocks paying the highest possible dividends, often 5–12% or more, prioritizing current income over capital appreciation.

High-Yield to Investment-Grade Bond Rotation When and why investors rotate from junk bonds to investment-grade as credit cycles turn, with spread signals and timing triggers.

Home Country Bias in Portfolio Allocation Why investors overweight domestic equities, how much, and how this home country bias affects risk-adjusted returns and diversification.

How Correlation Changes in a Market Crisis During market crashes, asset correlations converge toward one, eroding diversification benefits precisely when investors need them most.

How Many Stocks Are Needed to Diversify a Portfolio Research on idiosyncratic risk reduction shows diminishing returns beyond 20–30 holdings; understand the framework for right-sizing your portfolio.

How Much to Allocate to Alternative Assets Guide to sizing allocations to alternative assets, private equity, and real assets based on liquidity needs and institutional constraints.

How Rebalancing Frequency Affects Systematic Strategy Returns Rebalancing frequency—whether daily, monthly, or annual—directly affects returns and costs in rules-based portfolios through drift management and transaction fees.

How the Momentum Factor Is Calculated Explains how the momentum factor is calculated: the standard 12-1 month lookback window, skip-month convention, and why these choices matter.

How to Add International Bonds to a Portfolio Include foreign fixed income for currency diversification and yield. Covers hedging currency risk, duration effects, and mechanics for domestic-focused investors.

How to Build a Dividend Growth Portfolio Learn how to construct a dividend growth portfolio: the yield thresholds, payout ratios, sector balance, and reinvestment mechanics that define this income strategy.

How to Build a Two-Fund Portfolio A two-fund portfolio combines a total-market equity fund with a bond fund for a simple, diversified passive allocation. Learn how to set the ratio and when to add complexity.

How to Size a Position in a Portfolio Position-sizing frameworks—equal weight, volatility-scaled, conviction-based—and how each balances concentration risk with diversification.

How Transaction Costs Erode Momentum Strategy Returns Bid-ask spreads, market impact, and short-term capital gains taxes shrink momentum alpha. See how turnover reduction preserves net returns.

Idiosyncratic Momentum A momentum signal built from a stock's residual returns after removing systematic market and factor exposures, isolating firm-specific price trends.

Idiosyncratic Volatility Factor The anomaly in which stocks with high firm-specific volatility earn anomalously low subsequent returns, contradicting the risk-return relationship.

Illiquidity Premium in Private Portfolio Allocation The return premium investors earn by accepting illiquidity in private assets. How much illiquidity is prudent depends on liability timing.

In-Kind Rebalancing Rebalancing a portfolio by transferring securities directly between positions instead of selling and repurchasing, avoiding forced liquidation and transaction costs.

Industry Group Rotation A tactical strategy that shifts capital between specific industry groups within or across sectors based on business cycle expectations and relative valuation.

Industry Momentum An investing approach based on the historical outperformance of past-winning industries, capturing momentum at the sector level rather than individual stocks.

Inflation Hedge Allocation in a Portfolio How much inflation hedge to hold in a portfolio depends on portfolio size, inflation expectations, and the trade-offs between protection and returns.

Inflation Regime Rotation: Adjusting Sector and Asset Exposure Learn how asset classes and sectors perform across different inflation regimes and how to rotate allocations as inflation environments shift.

Information Coefficient for Evaluating Quant Signals Information coefficient (IC) and ICIR measure a quant signal's predictive power and consistency. Essential metrics for systematic trading strategy validation.

Inside Day Breakout as a Momentum Entry Signal How traders use inside-day price patterns and range contraction as signals for directional breakouts and momentum entries.

Insider Buying Value Strategy A contrarian approach using open-market purchases by executives and directors as conviction signals in deep-value candidates.

Intangible Assets and the Value Factor How the rise of intangible-heavy businesses has distorted traditional book-to-market ratios and what updated value metrics attempt to correct.

Inter-Asset-Class Rotation Strategic reweighting of equities, bonds, real assets, and cash in response to macroeconomic regimes, valuations, and risk conditions.

Intermarket Rotation Signals: Bonds, Commodities, and Equities Discover how shifts in bond yields, commodity prices, and equity relationships create early signals for sector and asset-class rotation.

Intermediate-Term Momentum Window The 12-minus-1 month lookback period that captures the strongest return predictability in cross-sectional momentum strategies.

International vs Domestic Equity Allocation How to decide the optimal split between domestic and international equities based on diversification, currency risk, and return expectations.

International vs Domestic Rotation Tactical shift between home-country equities and foreign market equities based on relative valuations and growth differentials.

Inverse Correlation Weighting Portfolio construction method that weights assets inversely to their correlation matrix, reducing concentration and diversification benefit loss.

Investment Factor How capital-intensive growth undermines returns — the asset growth anomaly as a systematic factor signal.

Investment-factor Investment-factor investing is a systematic strategy that favors companies with low capital expenditure relative to earnings, betting that disciplined capital allocation drives returns.

IPO Momentum A strategy that capitalizes on the tendency of newly listed stocks that surge in the first months of trading to continue outperforming in the following six months.

Is the Value Factor Dead? Evidence After 2007 Value investing has underperformed growth since 2007. Debate centers on structural headwinds (tech intangibles), crowding, or temporary cyclicality. Data suggest value is wounded but not extinct.

Kalman Filter Trading A statistical method for estimating dynamic hedge ratios and smoothing price signals in real-time algorithmic trading.

Ladder strategy A ladder strategy is a fixed-income or purchasing approach of staggering purchases or holdings across multiple maturity dates, evenly spacing investments over time to reduce timing risk and create consistent income.

Lazy portfolio A lazy portfolio is an ultra-simple investment approach using one or two index funds on autopilot, designed for maximum convenience and minimum effort or decision-making.