English term
Alpha
There are a variety of ways to generate alpha in the FX markets. A top team of spot traders, a
group of economists or a fully trained neural net algorithm might all work well. But the method
which has leapt to the front of the pack is the so-called 'technical-type' back-tested models.
Non-PRO (1): Charlesp
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Responses
active return
It is usually referred to with mutual funds.
The excess return of an investment relative to the active return of a benchmark index is the investment’s alpha.
Thank you very much :) |
excess returns
Thank you :) |
measure of investment performance compared with a suitable market index
I think this explains it a bit better than investopoedia
https://en.wikipedia.org/wiki/Alpha_(finance)
"...In modern financial markets, where index funds are widely available for purchase, alpha is commonly used to judge the performance of mutual funds and similar investments. As these funds include various fees normally expressed in percent terms, the fund has to maintain an alpha greater than its fees in order to provide positive gains compared with an index fund. Historically, the vast majority of traditional funds have had negative alphas, which has led to a flight of capital to index funds and non-traditional hedge funds..."
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