Finance Archives - Raúl Bartolomé

Practicing as an independent financial adviser, an obstacle course with prohibitive costs

Post category:Business Finance
Post published:2023-01-15

Financial advice is a profession that is heavily regulated in the EU. There are two basic modalities to practice the profession of financial adviser, the first is through association with a financial institution and the second through the formation of a company. What leads to being a dependent or independent financial advisor respectively. This article explores the training requirements for financial advisors. It also outlines the necessary steps to practice as an independent financial advisor in the EU, which require obtaining a financial license and forming a company in a European jurisdiction.

Pairs Trading and Buy-and-Hold Trading Algorithms

Post category:Finance Software and IT
Post published:2022-04-23

Pairs trading is an established trading strategy for hedge funds and alike. It is a relatively simple trading strategy that presents two distinctive phases. First, it identifies pairs of securities that are related using one year of historical data. Second, it trades for six months the underlaying securities of the pairs whenever the spread of the pairs exceeds certain value, usually two times the historical standard deviation. In my latest manuscript I conduct an empirical research of pairs trading algorithm to study its behaviour and fundamental characteristics. Likewise, I compare the results with the standard benchmarking Buy-and-hold strategy using SPY contact. I find particularly interesting the conclusions for retail and institutional investors

Algorithmic trading – the first year of Doctorate in Business Administration

Post category:Finance Management Psychology Software and IT
Post published:2021-08-15

I have successfully passed my first year of doctorate in business administration (DBA), so three more years to go. Looking backward, the experience has been rewarding, demanding, mentally stimulating but not absent of fears and existentialist crisis. My naive and candid view of algorithmic trading has grown tremendously, now I am aware of the academic research techniques that help me to understand the existing literature; I have defined and exercised the foundation of algorithmic trading, academically and practically; and I have started my first formal literature reviewing of my research interest. Curious about algorithmic trading?

Evaluation of three algorithmic trading strategies: buy and hold, volatility risk premium and sentimen momentum

Post category:Finance Software and IT
Post published:2021-04-03

The study of algorithmic trading is of high importance given its predominance and forecasted growth. In 2019 the majority of the equity traded in US was executed by algorithms, equivalent to 35.1% of $31 trillion and the global estimated compounded annual growth rate over the period 2020-2027 is 8.7%. This article evaluates three algorithmic trading strategies: buy and hold, volatility risk premium and sentiment momentum. Which one might be the best for an investor with an investment horizon of five years?

Starting a Doctorate in Business Administration

Post category:Finance Management
Post published:2020-12-23

Once more I have started a new university degree, this time a DBA in the modality of executive DBA, part time, extramural. It is a four-year course, pinnacle of management education. The DBA is taught by the University of Bradford, Faculty of Management, Law and Social Sciences. They are already good old friends because I had my MBA in the same school. The DBA thesis will pivot around algorithmic trading strategies, the objective is to systematically analyse them and identify which ones are more suitable for different profiles of investors.

Annaly (NLY-N), the largest mortgage REIT, is it a good investment?

Post category:Business Finance
Post published:2020-06-21

Annaly is a REIT specialized in mortgages, the largest of its kind in the United States. Provides a juicy 12.6% dividend. Do you wonder if this is a good time to buy shares of Annaly or other REITs. This article can help you.

The real estate situation in Germany. Is there a bubble?

Post category:Business Finance
Post published:2020-06-12

The purchase prices of houses in Munich show a growth that many describe as a real estate bubble, with an average of 5000 EUR/m2 in 2016 to 7500 EUR/m2 in 2020, which leads to a growth of 50%. Prices not only grow due to the economic boom and strategic situation of the city, the financing facilities are excellent, the financial institutions provide loans with interests close to 0%.

Are investment funds a substitute for financial advice?

Post category:Finance
Post published:2020-05-23

As an investor since 2015 and future financial advisor I think it is fair to say that it depends. In this article I explain the added value of financial advisers and how to achieve similar results using two alternatives.

The Bank’s Situation in Germany

Post category:Finance
Post published:2020-02-29

In general, German banks are a more complicated situation in terms of profitability than their counterparts in other EU countries due to very low interest rates (CNBC, 2019). One of the main problems is the proliferation of small savings banks, there are about 400 savings banks in the country known as Sparkassen, which represent 15 percent of the total assets of the banking sector (Internationalbanker, 2019), these boxes savings present a personalized service, neighborhood, which is not free of cost.

If I were the Director of a Deutsche Bank Neighborhood Bank

Post category:Finance Management
Post published:2020-02-26

The Deutsche Bank (DB) subsidiary is located in the Bogenhause neighborhood in Munich, Germany. Bogenhause is a residential neighborhood, located on the outskirts of Munich. As director of the subsidiary, you are aware of the number of challenges to which the bank is plunged and pay special attention to the specific aspects of the subsidiary.

N26, My Bank In Germany

Post category:Finance
Post published:2020-02-22

N26 is a German bank founded in 2016, which operates in most of the euro zone countries, Switzerland and the USA. The entity is classified as a neobank, 100% digital and accessible to customers only in mobile applications and website. In 2019 Forbes announces that N26 the entity became the online bank with the highest market capitalization in Europe, ahead of Revolt.

Tandem Interactive Brokers and N26

Post category:Finance
Post published:2020-02-15

The prestigious Barron’s newspaper, specializing in financial and economic information, published the online broker ranking for 2019 (Miller, 2019). The winner was Interactive Brokers (IB), a situation that has occurred in previous years. This assessment is endorsed by other organizations such as Broker Chooser (2020) that classifies IB as the best online broker, best broker for daily operations and best broker for futures.

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