Blog Posts

Key Takeaways – Corporate Bonds Corporate bonds are generally unsuitable for pure day trading They lack the volatility and fast-paced price changes that day traders rely upon to turn quick profits. Corporate bond ETFs like VTC serve a different purpose for longer-term traders/investors They provide portfolio diversification, steady income, and some stability within a balanced […]

Financial market exchanges are owned by a mix of: public shareholders private entities government or quasi-government bodies, and in some cases, technology companies or consortia This reflects diverse ownership structures tailored to each exchange’s strategic goals and operational models. Exchange ownership, particularly stock exchanges, can be understood through the lens of two primary models: public […]

Calculating swap rates, especially in the context of interest rate swaps, involves understanding the principles of fixed income and derivatives markets. Interest rate swaps are financial derivatives that allow two parties to exchange interest rate payments, typically one fixed rate for one floating rate, based on a notional principal amount.   Key Takeaways – How […]

Market-neutral trading strategies are designed to minimize exposure to market risk by simultaneously taking long and short positions in closely related instruments. In this way, it aims for returns largely independent of the overall market movement (i.e., no beta). These strategies are a cornerstone of quantitative finance, which leverage statistical and mathematical models to identify […]

TensorFlow and Keras are Python libraries used for building trading models and strategies. We look at how they can be applied in trading. Key Takeaways – TensorFlow & Keras in Trading TensorFlow and Keras are both open-source libraries for machine learning and deep learning. TensorFlow, developed by the Google Brain team, is a platform that […]

In rising interest rate markets, traditional trading and investment strategies may not perform as expected due to the inverse relationship between interest rates and bond prices, along with the potential for decreased consumer spending and increased costs for borrowing companies. We look at several strategies investors and traders might consider to potentially benefit or protect […]

We look at the following Python trading strategies: Trend Following Momentum Trading Swing Trading Scalping Day Trading Position Trading High-Frequency Trading (HFT) Mean Reversion Arbitrage Market Making Pair Trading News Trading Algorithmic Trading Volume Weighted Average Price (VWAP) Trading Dollar-Cost Averaging (DCA) Contrarian Investing Options Strategies (e.g., Covered Calls, Iron Condor) Carry Trade Grid Trading […]

The term “ripe to short” refers to a trading strategy or perspective where a trader identifies a stock or security that appears to be overvalued or poised for a price decline – and, therefore, a favorable short selling opportunity. Short selling involves borrowing shares of a stock/security/asset and selling them at the current market price, […]

A “buy to cover” is a transaction in the financial markets used primarily within the context of short selling. Short selling is the practice of selling securities that the seller doesn’t currently own, with the expectation that their price will decrease in the future and allow them to be bought back at a lower price. […]

A trading plan is a systematic method that outlines how a trader will identify, execute, and manage trades. Most traders realize that trading in an overly discretionary way can lead to poor results and bad decisions, so they decide to start writing down their criteria for how they’ll trade going forward. A trading plan is […]