Blog Posts

To learn machine learning (ML) for traders, investors, and other financial professionals, it’s best to start by acquiring a strong foundation in Python programming and essential mathematical concepts such as statistics, probability, and linear algebra. Progressively go into machine learning principles, focusing on algorithms relevant to financial markets, such as time series analysis and reinforcement […]

Let’s look at some day trading facts and statistics. We have article sources at the bottom, including where each numbered fact can be found in the parenthetical.   Day Trading Facts & Statistics Only about 1-20% of day traders actually profit from their endeavors in some way. Approximately 4% of day traders manage to make […]

A popular paper in quantitative finance – for a period the #1 most downloaded paper on SSRN – is making the old argument for a 100% equities allocation. The argument against the notion of a 100% equity allocation for long-term investors, based on recent discussions and longstanding financial principles is articulated below.   Key Takeaways […]

In trading and finance, machine learning is reshaping traditional market analysis. We look into the integration of machine learning in financial research, exploring its challenges, opportunities, and its potential for the future.   Key Takeaways – Machine Learning in Trading & Finance Machine Learning’s Role in Finance: Machine learning offers a fresh lens for financial […]

Transaction costs in markets, trading, and finance refer to the expenses incurred when buying or selling securities or assets. These costs can significantly impact the profitability of trades and the efficiency of markets. They’re one of the least talked about factors discussed in trading despite their impact on net returns. Understanding the different types of […]

Direct Market Access (DMA) allows traders and investors to place buy and sell orders directly on the stock exchange’s order book. This method bypasses traditional brokers and offers faster execution speeds and greater transparency in trading.   Key Takeaways – Direct Market Access (DMA) DMA allows traders and investors to place orders directly on the […]

Order execution strategies in finance, markets, and trading are used for minimizing costs, improving execution quality, and managing risk. These strategies are important for both individual traders and institutional investors. They involve various techniques and algorithms to execute trades efficiently by considering market conditions, volume, and price impact.   Key Takeaways – Order Execution Strategies […]

Mean-Variance Optimization, also known as the Two-Moment Decision Model, is a popular financial metric developed by Harry Markowitz in 1952. It forms the basis for modern portfolio theory and assists in the construction of investment portfolios. This analysis hinges on two key statistical measures: the mean, representing expected returns, and the variance, indicating risk or […]

Adaptive filtering techniques in finance enable the creation and adjustment of predictive models in real-time. Fundamentally, in trading contexts, how do changes in the value of input variables lead to certain trading decision(s))? Adaptive filtering techniques help with these fundamental analysis tasks, which makes them valuable for various financial applications including algorithmic trading, risk management, […]

The role of money supply in the economy is a hotly debated topic among economists, with its relationship to inflation being particularly controversial. The traditional perspective suggests that an increase in money supply leads to inflation, while a transactions-based approach argues that it is the level of spending that primarily influences inflation. The complexity of […]