Blog Posts

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 […]

In financial trading, the terms “ask” and “bid” refer to the two sides of a trade for assets such as stocks, bonds, commodities, and foreign exchange. They represent the prices at which buyers and sellers are willing to transact. For example, if you look at the price of a security within your broker, it will […]

The Dip and Rip pattern is a common trading strategy used by traders to identify potential buy opportunities in the stock market. It’s especially popular among day traders and those involved in momentum trading. This pattern is characterized by a significant price dip shortly after the market opens, followed by a strong reversal and upward […]

Consolidation in stocks refers to a period where a stock’s price moves within a relatively stable range without a clear trend for an extended time. This phase is characterized by a balance in supply and demand, indicating that investors are in agreement on the stock’s price, leading to sideways movement in the price chart.   […]

Reinsurance is prized in portfolio construction because of the diversification it can provide in a portfolio. While most asset classes move at least partially due to global credit cycles, reinsurance instruments often trade due to a totally separate set of factors (e.g., natural disasters and other weather-/insurance-related events). For example, catastrophe bonds (CAT bonds) payout […]

It’s technically possible for small traders to become market makers. Market making is not limited by the size of the entity but by its ability to comply with the rules and provide continuous liquidity to the market. Nonetheless, there are significant challenges and it requires adherence to specific regulatory, financial, and technological requirements   Key […]