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Trading Strategy
In finance, a trading strategy is a fixed plan that is designed to achieve a profitable return by going long or short in markets. The difference between short trading and long-term investing is in the opposite approach and principles. Going short trading would mean to research and pick stocks for future fast trading activity on one's accounts with a rather speculative attitude. While going into long-term investing would mean contrasting activity to short one. Low turnover, principles of time-tested investment approaches, returns with risk-adjusted actions, and diversification are the key features of investing in a long-term manner. For every trading strategy one needs to define assets to trade, entry/exit points and money management rules. Bad money management can make a potentially profitable strategy unprofitable.Nekrasov, V. Knowledge rather than Hope: A Book for Retail Investors and Mathematical Finance Students''. 2014pages 24-26 '' Trading strategies are based on fundame ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Finance
Finance refers to monetary resources and to the study and Academic discipline, discipline of money, currency, assets and Liability (financial accounting), liabilities. As a subject of study, is a field of Business administration, Business Administration wich study the planning, organizing, leading, and controlling of an organization's resources to achieve its goals. Based on the scope of financial activities in financial systems, the discipline can be divided into Personal finance, personal, Corporate finance, corporate, and public finance. In these financial systems, assets are bought, sold, or traded as financial instruments, such as Currency, currencies, loans, Bond (finance), bonds, Share (finance), shares, stocks, Option (finance), options, Futures contract, futures, etc. Assets can also be banked, Investment, invested, and Insurance, insured to maximize value and minimize loss. In practice, Financial risk, risks are always present in any financial action and entities. Due ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Scalping (trading)
Scalping, when used in reference to trading in securities, commodities and foreign exchange, may refer to either # a legitimate method of arbitrage of small price gaps created by the bid–ask spread, or # a fraudulent form of market manipulation. Arbitrage Scalping, in the arbitrage sense, is a type of trading in which traders try to open and close positions in very short periods of time in markets such as foreign exchange and securities with the aim of making a small profit from the trades. Adding more onto scalping is a trading strategy where traders make small profits by quickly buying and selling. It’s popular in markets like foreign exchange and stocks, where traders take advantage of tiny price changes or bid-ask spreads. Traders usually start scalping whenever they are down money and start basically gambling to make money they put in 1:1 risk ratio. How scalping works Scalping is the shortest time frame in trading and it exploits small changes in currency price ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Alternative Trading System
Alternative trading system (ATS) is a US and Canadian regulatory term for a non-exchange trading venue that matches buyers and sellers to find counterparties for transactions. Alternative trading systems are typically regulated as broker-dealers rather than as exchanges (although an alternative trading system can apply to be regulated as a securities exchange). In general, for regulatory purposes, an alternative trading system is an organization or system that provides or maintains a market place or facilities for bringing together purchasers and sellers of securities, but does not set rules for subscribers (other than rules for the conduct of subscribers trading on the system). An ATS must be approved by the United States Securities and Exchange Commission (SEC) and is an alternative to a traditional stock exchange. The equivalent term under European legislation is a multilateral trading facility (MTF). These venues play an important role in public markets for allowing alternati ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
E-commerce
E-commerce (electronic commerce) refers to commercial activities including the electronic buying or selling products and services which are conducted on online platforms or over the Internet. E-commerce draws on technologies such as mobile commerce, electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data collection systems. E-commerce is the largest sector of the electronics industry and is in turn driven by the technological advances of the semiconductor industry. Defining e-commerce The term was coined and first employed by Robert Jacobson, Principal Consultant to the California State Assembly's Utilities & Commerce Committee, in the title and text of California's Electronic Commerce Act, carried by the late Committee Chairwoman Gwen Moore (D-L.A.) and enacted in 1984. E-commerce typically uses the web for at least a part of a transacti ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
History Of The Internet
The history of the Internet originated in the efforts of scientists and engineers to build and interconnect computer networks. The Internet protocol suite, Internet Protocol Suite, the set of rules used to communicate between networks and devices on the Internet, arose from research and development in the United States and involved international collaboration, particularly with researchers in the United Kingdom and France. Computer science was an emerging discipline in the late 1950s that began to consider time-sharing between computer users, and later, the possibility of achieving this over wide area networks. J. C. R. Licklider developed the idea of a universal network at the Information Processing Techniques Office (IPTO) of the United States United States Department of Defense, Department of Defense (DoD) DARPA, Advanced Research Projects Agency (ARPA). Independently, Paul Baran at the RAND Corporation proposed a distributed network based on data in message blocks in the ea ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Paul Samuelson
Paul Anthony Samuelson (May 15, 1915 – December 13, 2009) was an American economist who was the first American to win the Nobel Memorial Prize in Economic Sciences. When awarding the prize in 1970, the Swedish Royal Academies stated that he "has done more than any other contemporary economist to raise the level of scientific analysis in economic theory". "In a career that spanned seven decades, he transformed his field, influenced millions of students and turned MIT into an economics powerhouse" Samuelson was one of the most influential economists of the latter half of the 20th century."Paul Samuelson: The last of the great general economists died on December 13th, aged 94" ''The Economist'', December 17, 2009 In 1996, he was awarded the ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Kelly Criterion
In probability theory, the Kelly criterion (or Kelly strategy or Kelly bet) is a formula for sizing a sequence of bets by maximizing the long-term expected value of the logarithm of wealth, which is equivalent to maximizing the long-term expected Geometric mean, geometric growth rate. John Larry Kelly Jr., a researcher at Bell Labs, described the criterion in 1956. The practical use of the formula has been demonstrated for gambling, and the same idea was used to explain Diversification (finance), diversification in investment management., page 184f. In the 2000s, Kelly-style analysis became a part of mainstream investment theory and the claim has been made that well-known successful investors including Warren Buffett and William H. Gross, Bill Gross use Kelly methods. Also see intertemporal portfolio choice. It is also the standard replacement of Power of a test, statistical power in anytime-valid statistical tests and confidence intervals, based on E-values, e-values and e-proc ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Exchange-traded Fund
An exchange-traded fund (ETF) is a type of investment fund that is also an exchange-traded product, i.e., it is traded on stock exchanges. ETFs own financial assets such as stocks, bonds, currencies, debts, futures contracts, and/or commodities such as gold bars. Many ETFs provide some level of diversification compared to owning an individual stock. An ETF divides ownership of itself into shares that are held by shareholders. Depending on the country, the legal structure of an ETF can be a corporation, trust, open-end management investment company, or unit investment trust. Shareholders indirectly own the assets of the fund and are entitled to a share of the profits, such as interest or dividends, and would be entitled to any residual value if the fund undergoes liquidation. They also receive annual reports. An ETF generally operates with an arbitrage mechanism designed to keep it trading close to its net asset value, although deviations can occur. The larges ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Maximum Drawdown
The drawdown is the measure of the decline from a historical peak in some variable (typically the cumulative profit or total open equity of a financial trading strategy). Somewhat more formally, if X(t), \; t \ge 0 is a stochastic process with X(0) = 0, the drawdown at time T, denoted D(T), is defined as: D(T) = \max_X(t)-X(T) The average drawdown (AvDD) up to time T is the time average of drawdowns that have occurred up to time T:\operatorname(T) = \int_0^T D(t) \, dtThe maximum drawdown (MDD) up to time T is the maximum of the drawdown over the history of the variable. More formally, the MDD is defined as: \operatorname(T)=\max_D(\tau)=\max_\left max_ X(t)- X(\tau) \right/math> Pseudocode The following pseudocode computes the Drawdown ("DD") and Max Drawdown ("MDD") of the variable "NAV", the Net Asset Value of an investment. Drawdown and Max Drawdown are calculated as percentages: MDD = 0 peak = -99999 for i = 1 to N step 1 do # peak will be the maximum value seen so fa ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Volatility (finance)
In finance, volatility (usually denoted by "sigma, σ") is the Variability (statistics), degree of variation of a trading price series over time, usually measured by the standard deviation of logarithmic returns. Historic volatility measures a time series of past market prices. Implied volatility looks forward in time, being derived from the market price of a market-traded derivative (in particular, an option). Volatility terminology Volatility as described here refers to the actual volatility, more specifically: * actual current volatility of a financial instrument for a specified period (for example 30 days or 90 days), based on historical prices over the specified period with the last observation the most recent price. * actual historical volatility which refers to the volatility of a financial instrument over a specified period but with the last observation on a date in the past **near synonymous is realized volatility, the square root of the realized variance, in turn c ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Sharpe Ratio
In finance, the Sharpe ratio (also known as the Sharpe index, the Sharpe measure, and the reward-to-variability ratio) measures the performance of an investment such as a security or portfolio compared to a risk-free asset, after adjusting for its risk. It is defined as the difference between the returns of the investment and the risk-free return, divided by the standard deviation of the investment returns. It represents the additional amount of return that an investor receives per unit of increase in risk. It was named after William F. Sharpe, who developed it in 1966. Definition Since its revision by the original author, William Sharpe, in 1994, the '' ex-ante'' Sharpe ratio is defined as: : S_a = \frac = \frac, where R_a is the asset return, R_b is the risk-free return (such as a U.S. Treasury security). E _a-R_b/math> is the expected value of the excess of the asset return over the benchmark return, and is the standard deviation of the asset excess return. The t-sta ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Social Trading
Social trading is a form of investing that allows investors to observe the trading behavior of their peers and expert Trader (finance), traders. The primary objective is to follow their investment strategies using copy trading or mirror trading. Social trading requires little or no knowledge about financial markets. History One of the first social trading platforms was Collective2] which began offering a social trading functionality to retail traders as early as 2003 (preceding ZuluTrade by four years). In 2010, social trading started to achieve a greater degree of mainstream appeal with eToro, followed by Wikifolio in 2012. Europe-baseNAGA listed on Frankfurt Stock Exchange since 2017, claims more than EUR 27 billion was traded on its platform in the second half of 2019. Some of the contemporary social trading platforms other than the ones mentioned already are Trading Motion, iSystems, and FX Junction, among others. Research MIT Computer Scientist and researcher Yaniv Altshuler ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
