CMT case studies
CMT · Put your knowledge to work in context.
The Chartered Market Technician® (CMT®) designation is awarded by the CMT Association and is described by the association as the preeminent global designation for practitioners of technical analysis. Earning it requires passing all three levels of the CMT Program, accumulating qualifying professional work experience that contributes directly to financial market analysis or investment decision-making, and applying for Professional Membership, which includes submitting professional references to verify work and character. The curriculum is built for portfolio managers, traders, investment advisors, RIAs, investment strategists, research heads, and chief investment officers who want a structured foundation in technical analysis of financial markets, with coverage extending into behavioral finance, risk management, and quantitative strategies. Exams are offered twice a year, in June and December. The CMT case studies are 5 cases and about 3,516 words.
1Breakout on Thin Volume: Confirmation or Trap?
ABC Corp has traded between 47.80 and 52.40 for 12 weeks, with average daily volume of 1.9m shares. On Tuesday it closes at 53.90, about 2.9% above the range top.
641 words, about 3 min2The Portfolio That Sells Its Winners
A discretionary manager runs $420m. Year to date the fund is +6.2% against a benchmark of +9.1%.
713 words, about 4 min3Three VaR Breaches in Twenty Days
A 60m multi-asset book reports a 99% one-day VaR of 2.1m using historical simulation on 250 days of data, with an EWMA volatility overlay at lambda = 0.94. Over the last 20 trading days there have been three breaches: − 2.3m, − 2.6m and −$3.4m.
669 words, about 3 min4A Sharpe of 2.1 That Didn't Survive Contact
A cross-sectional mean-reversion strategy on mid-cap US equities shows a five-year in-sample Sharpe of 2.1. The rule is: rank on a 20-day z-score of price to 20-day moving average, enter at z 2.0, exit at z < 0.5, hold maximum 10 days.
779 words, about 4 min5Sizing a Thin Edge With Fat Tails
A systematic trader has 800 trades of history: 58% winners, average win 0.90R, average loss 1.00R. Maximum historical drawdown is 14R.
714 words, about 4 min