Trading News

How to start your own Quantitative desk - Challenges, Opportunities and Potential.

Quantitative analytics have always been a front-runner of financial innovation and a key facilitator of new product development. But today, the demand for accurate quantitative analysis across the entire industry is steadily rising.

Having recently enrolled in the QuantInsti EPAT program, I was quite surprised to learn that a large portion of algorithmic trading was not focused on trying to predict future prices but rather on generating alpha by lowering transaction fees and improving execution prices.

China’s stocks rallied to the highest level in seven weeks and turnover jumped amid speculation the government will take more steps to bolster economic growth.

Execution of trades on stock exchanges based on pre – defined criteria and without any human intervention using computer programs and software is called algorithmic trading or algo trading. While being a subset of algorithmic trading, high-frequency trading involves buying and selling thousands of shared in fractions of seconds.

As China’s Communist Party leaders began rolling out a blueprint last week to manage a transition to more balanced growth over the next five years, they confront the immediate task of halting the economy’s slide toward a debt-deflation trap.

A Russian passenger jet crashed in Egypt’s Sinai Peninsula, killing all 224 people on board, after losing contact with aviation authorities on Saturday.

This article is to discuss on the efficiency of the tool R in designing and back testing the trading strategies. But before getting in to the concepts of designing and back testing using R, we will have a simple introduction for this tool. What is R? R is nothing but the open source that has about 18,000 members in the Linkedln’s groups and 80 R meet up groups are there in existence now. This open source provides about 4000 packages for an efficient designing of strategies. This is a tool that perfectly matches the needs of data analysis, which is a must in strategy designing.

Hillary Clinton has put forward a proposal to levy taxes on the flash trading or high frequency trading. This is unlike anything that has been done anywhere else in the world.

Initial Public Offerings raised a whopping Rs. 4,950 crores in the first six months of the current financial year which is almost five times the amount raised last year during the same period (Rs. 1,017 crores). 25 IPOs were present in the last year during the same time. This year just between April and September, 39 IPOs have managed to make their existence felt. Out of these 39 IPOs, 12 are mainboard which resulted in mobilization of Rs. 4,777 crore. This amounts to almost 97 percent of the total amount mobilized. The rest 3 percent which amounts to Rs173 crores were mobilized by the SME IPOs.

BTRM is 6 months part time course designed to empower professionals working in bank risk management and asset-liability management (ALM). BTRM is the only bank treasury qualification. It covers treasury, finance and risk and all the aspects of ALM and liquidity management. BTRM believes in empowering students with the most appropriate tools and techniques used in real world by banks. This gives the students an edge while contributing to overall enhancement of the individual’s professional qualifications.

Have you ever watched the British movie Rogue Trader? It tells the true story of Nick Leeson, an employee of Barings Bank whose speculative trading resulted in wiping out of the bank that existed for 200 years. Lesson that came at a cost was, “It is important to define unambiguous risk limits for traders and then monitor carefully that the limits are being adhered to”.

PyThalesians is a Python financial library developed by the Thalesians, a think tank of dedicated professionals with an interest in quantitative finance, economics, mathematics, physics and computer science.

While algorithmic trading may sound fancy or complicated it is conceptually not very difficult to understand once you get your basics clear. At the outset an algorithm is a set of instructions or rules, when such an algorithm is used on stock exchange for automatic execution of orders without human intervention is called algorithmic trading.

This presentation explores the science behind quantified news based trading and will take you through how it is evolving with time. The presentation also highlights trading profitability results of strategies based on quantified news analytic

Gabay, a former Bank of England economist, says the world’s second-biggest economy is barreling toward a hard landing. He and colleagues at Fathom Financial Consulting Ltd. reckon its growth rate has slowed to about 3 percent a year -- less than half the official estimate of 6.9 percent for the year to the third quarter and the 6.5 percent the government is aiming for over the next five years.

Weaker developing-nation currencies and rising bond yields show that once again Janet Yellen has global investors pondering whether markets can withstand an increase in U.S. interest rates before year-end.

Voyage therapeutics did not expect the widespread fears of market conditions, which leading the window shut for biotech. It is known from a source that the biotech has become the Fierce 15 Company standing at ninth place. It has come from the 2014 class, which has files an IPO already looking for the markets in order to deliver 86 million dollars or at least to continue raising funds for gene therapy work which initiated by it in early stage. Recently, S-1 was filed by MA-based Voyager belonging Cambridge on Friday, reporting that the Third Rock has owned the company, slightly more than half. Eli Lilly vet Steven Paul managed the Voyager joined biotech, which was recent migration out from Big Pharma. Similarly, many biotechs are moving to NASDAQ in these days. At the same time, Voyager is trying to create a leap by applying little validation for the work done by them.

David Cheriton has once told “stupid latency”. The term latency always has hindered the trading. A network with low bandwidth can also be used to compete with the high bandwidth networks in trading. But a high latency network can never be matched with the low latency network. Let us understand this better. Say Boeing 747 is carrying 500 passengers and Boeing 737 is carrying 150 passengers. Can you say that the Boeing 747 will travel faster than Boeing 737? No. Both the planes travel at 500 kmpf. Thus they reach the destination at same time duration. But if there is a latency in any one plane, then it reaches little late than the other one. Latency is a very important factor in algorithmic trading.

The pair trading is the one in which the stocks are traded in pairs usually. Let the market trend upwards or downwards, pair trading doesn’t matter at all. The open positions for the two stocks will be evading against each other. For pair trading, the following two key challenges must be met.