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The phenomenon of lost information is something that happens quite regularly especially in financial databases. It is usually due to factors such as incomplete market feeds, holidays, or discrepancies with the data providers. Missing data for traders and analysts is a critical aspect that needs to be resolved so that they can formulate sound algorithm […]
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Algorithmic Trading is a method where trading is done using algorithms as the word ‘algo’ indicates. On the other hand, R, a prominent programming language which has fantastic capabilities in terms of statistics and data visualization, has been gaining traction among the algorithmic trading fraternity due to its large number of packages and flexibility to […]
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As it seems, cut-throat sharks in the financial industry require high level trading tools that are embeddable straight into the algorithms. And, cloud based Quantitative Trading platforms tend to be the go-to solutions for such traders who want to get more value in their algorithms. One such platform, QuantConnect, was launched back in 2011 and […]
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Natural Language Processing (NLP) permits traders to make sense of huge piles of unstructured data in a more effective manner than ever before. NLP has allowed for opinion mining to be applied across the board with a lot of benefits in recognizing news, social media, or any other text that spurs commentary. This capability enables […]
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Position sizing can serve as a critical part of risk management in your trading systems, for instance in the management of margin accounts in finance. For quantitative traders, position sizing entails the computation of optimum size for each trade based on set rules or strategy. Position sizing when applied adequately can reduce level of risk […]
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A fundamental concept in assessing investment strategies and how effective they actually are is the risk-adjusted returns. Out of a number of metrics that can be used for this purpose, the Sortino Ratio stands out as an innovative tool, intended to fill a gap in the overall conceptualization of risk that is not covered by […]
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Data is fundamental in the strategy development and execution processes in algorithmic and quantitative trading providing traders with two types of data namely real-time data and historical data. It’s critical to grasp the differences between them, know how to apply them, and appreciate the challenges posed by each if one is to succeed in algorithmic […]
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Pair trading is used among strategies that find support in economic or algorithmic approaches, and it theory explains every strategy, which actually consists in picking out 2 assets that have had relatively close prices in the past, and then selling the one that is more expensive than necessary. That being that in the long run […]
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In quantum trading the analysis of large data sets, back testing for strategies and ordering is programmed in different programming languages. Different languages have their own strengths and weaknesses. The choice of the language depends on how the trading strategy and data sources will be, the speed, and complexity of implementation. That is why this […]
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There is no doubt that algorithmic trading has changed the way investors approach financial markets. Trading has evolved from a manual process to contemporary systematic data-driven strategies. The optimal scale algorithms or a set of predetermined rules, allows target traders to automatically purchase an asset at the highest speed. This gives a great edge over […]