CMT Exam Learning Objectives – The Foundation of the CMT Program

Interested in advancing your finance career by becoming a Chartered Market Technician? You’ll need to pass the rigorous CMT exam, which extenstively tests your knowledge of technical analysis.

To help you prepare, UWorld has aggregated the Learning Objectives for all three levels of the CMT exam in one easy place.

CMT Primary Knowledge Domains

1. Quantitative Financial Research & Trading

Covers the tools you need to perform quantitative research and analysis, and includes:

• A scientific method for analyzing price and volume data
• Exposure to non-fundamental factors
• Methods for strategy differentiation and process efficiency
• Tools to facilitate system development and algorithmic trading
• Signal testing and validation

2. Risk Management

The CMT Program preparesmanagers to outperform on a risk adjusted basis by:

• Measuring performance and validating trading and investing systems
• Using a disciplined approach to money management and trade allocation
• Recognizing market-based signals to exploit both continuing trends and mean-reverting behavior

3. Applied Behavioral Finance

To ready your to understand the nature of markets and their irrational market participants, the CMT program:

• Takes a deep dive into behavioral economics
• Extends theory into practice
• Translates cognitive bias and heuristics into observable market anomalies
• Covers loss aversion, overconfidence, herding, anchoring, belief perseverance, and more

4. Portfolio Management

Overall, the CMT program will help you to develop a repeatable process for making decisions about important issues such as investment mix and asset allocation, or balancing risk against performance.