CMT Level 3

The CMT Level III exam tests the candidate’s ability to integrate a wide range of concepts and tools into the application of technical analysis.The Level III exam is organized into groups, most of which weave together two or more knowledge domains.

Chartered Market Technician Level 3 - Prep Course

20 Live Sessions

Primary Language : English 
(**Special Batch for Hinglish)
Average 4Hrs a Week

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System Testing

We will create systems from scratch on Tradingview Pinescript &Amibroker AFL

Codes, PDF, & Support

Tradingview Scripts, Amibroker AFLs, Training & Support with resources.

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Was INR 49,000/-, Now Pay Only INR 41,650/-

What will you learn ?

  • 1 System Design and Testing
    Assess the value and challenges of using a system for trading or investing
    Compare and analyze differences between discretionary and nondiscretionary systems
    Evaluate the mind-set and discipline required to develop and trade with a system
    Organize the basic procedures for designing a system
    Inventory types of technical trading systems
    Defend the necessity of risk management protocols in a trading system
    Examine critical aspects of performing system tests
    Compare and evaluate standard measures of system profitability and risk
    Differentiate between various methods of optimization
  • 2 Money and Portfolio Risk Management
    Distinguish between trading strategies and money-management strategies
    Evaluate the significance of the theory of runs and a martingale strategy
    Model position size using risk of ruin and optimal f methods
    Differentiate between diversifiable and correlated risk
    Compare and analyze the various types of stops used to manage risk
    Assess the minimum capital needed for trading a system
  • 3 System Evaluation and Testing
    Choose factors for system testing including objectives, parameters and test data
    Assess the use of in-sample and out-of-sample data
    Evaluate optimized test results for continuity and significance using a variety of visualization methods
    Explain the basics of using genetic algorithms
    Illustrate the concept of robustness in a trading system
    Critique the use of performance and risk metrics based on a given objective
  • 4 Practical Considerations
    Plan for system development and testing: data, techniques, and initial evaluation of results
    Assess the potential impact of price shocks and formulate plans for managing them
    Assess the impact of runs and martingales on a trading system
    Evaluate the trade-offs between trend-following and mean-reverting systems
  • 5 Risk Control
    Compare risk and performance metrics derived from the following: Sharpe Ratio, Information Ratio, Treynor Ratio, Calmar Ratio, Sortino Ratio
    Interpret calculations of Value at Risk (VaR)
    Model position size using various capital and volatility approaches in this chapter
    Compare various methods for setting stops and profit targets
    Compare approaches to compounding positions
    Calculate the risk of ruin
    Calculate optimal f
  • 6 Statistical Analysis
    Assess random and nonrandom trends in trading system performance
    Examine sampling and sample statistics in trading
    Calculate relative frequency
    Organize six elements of a statistical inference problem
    Differentiate between theoretical and empirical probabilities
    Derive a sampling distribution
  • 7 Hypothesis Tests and Confidence Intervals
    Differentiate between necessary and sufficient conditions
    Compare the assertions of the null and alternative hypotheses
    Defend why the null hypothesis should be framed as the target of a test
    Prepare the data and arrange the steps for a Monte Carlo simulation
  • 8 Regression
    Assess values generated by regression, multiple regression and tolerance calculations
    Select meaningful predictor variables for multiple regression studies based on correlation values among them and with the dependent variable
  • 9 Gold
    Compare general correlations among gold, dollar, stocks, and indexes
  • 10 Intermarket Indicators
    Construct relative strength studies and evaluate the results
    Compare intermarket indicators described in this chapter
    Prepare recommendations based on asset correlation data
  • 11 A Unique Way to Visualize Relative Strength
    Evaluate the trend and momentum of relative strength using Relative Rotation Graphs (RRGs)
    Assess relative strength using the indicators derived from the RRG concept
  • 12 Fact, Fiction and Momentum Investing
    Defend the use of momentum strategies using historical data
    Argue against common myths about momentum strategies
  • 13 Analyzing the Macro-Finance Environment
    Assess the business cycle, the financial cycle, and their relationship
    Manage a sector rotation model based on the business and financial cycles
    Use leading, coincident, and lagging indicators of economic activity
  • 14 Portfolio Risk and Performance Attribution
    Assess the statement “total risk = volatility = standard deviation of returns”
    Compare the three formulations of total risk
    Defend the assertion that “diversification reduces only firm-specific risk”
    Defend beta and its role in assessing portfolio risk
    Employ the Sharpe and Treynor ratios for individual stocks and portfolios
  • 15 Behavioral Biases
    Distinguish between two types of biases: cognitive and emotional
    Formulate plans to counter behavioral biases in making investment decisions
    Propose methods to capitalize on the behavioral biases of other market participants
    Examine the specific behavioral biases in each of those categories
  • 16 Investor Psychology
    Inventory general behavioral aspects that impact price action
    Evaluate behavioral elements that contribute to the development of chart patterns
    Evaluate behavioral elements that contribute to the persistence of trends
    Evaluate behavioral elements that contribute to periods of consolidation
    Evaluate behavioral elements that contribute to trend reversals
  • 17 Are Two Heads Better than One?
    Assess the negative consequences of group/committee decision making
    Organize approaches to mitigating the effects of group biases
  • 18 The Anatomy of a Bubble
    Diagram the five stages of a bubble
    Assess the characteristics of each of the five stages
    Assess hypothetical market environments to identify what stage they indicate
  • 19 De-Bubbling: Alpha Generation
    Assess the three cross-section strategies that should benefit from a de-bubbling/deflationary period
  • 20 Behavioral Techniques
    Evaluate market reactions to events: planned news releases versus price shocks
    Estimate reactions to events using the volatility ratio
    Assemble a COT Index and a COT Sentiment Index from Commitments of Traders (COT) data
  • 21 The VIX as a Stock Market Indicator
    Compare movement in the VIX and the S&P 500
    Evaluate VIX and VIX futures price relationships for signals
    Formulate market forecasts that include volatility as an input
  • 22 Hedging with VIX Derivatives
    Defend the rationale behind hedging with VIX products
    Propose hedge strategies using VIX options and futures
    23 Advanced Techniques
    Assess the relationship between price and volatility
    Compare several measures of volatility
    Calculate profit targets and stop-loss levels using volatility
    Evaluate methods for filtering a system’s signals based on volatility
    Assess how fractal, chaos, and entropy concepts may be applied to trading
    Explain the basics of using neural networks
    Explain the basics of using genetic algorithms
  • 24 Pattern Recognition
    Compare and evaluate pivot points and DeMark’s calculations for price ranges
    Examine intraday data for idiosyncratic patterns in various markets
    Assess the use of opening gaps as trading signals
  • 25 Multiple Time Frames
    Evaluate chart data using Elder’s and Pring’s multiple time-frame methods
    Defend Krausz’s six rules for multiple time frames
  • 26 Candlestick Analysis
    Evaluate the strengths and weaknesses of candlestick charts
    Categorize reversal and continuation candlestick patterns
    Interpret the nine important price action guidelines
    Assess the significance of various Japanese candlestick patterns to pinpoint reversals and breakouts
    Integrate candlestick charts with other technical studies
  • 27 Progressive Charting
    Evaluate candle patterns as they develop in a chart
    Compose responses to the four questions posed at the outset of the chapter
  • 28 Bringing it All Together: Real-World Charts
    Predict likely price action based on candlestick patterns and the overall context of the price action
    Propose entry and exit points based on patterns, price action, and risk
    Assess trend persistence based on candlestick patterns and the overall context of the price action
  • 29 Conclusions
    Assess the validity of the 12 major conclusions about technical indicators the authors present
    Defend the use of technical indicators when properly employed in a variety of market environments

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