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

## Live Tests

Get the Feel of Exam Environment & Be Well Prepared

## Easy Content Access

Notes, Test Bank, Lectures

100% Self-Paced Study

## iOS & Andriod App

Everything is at your fingertips on Mobile and Tablet

## 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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## 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