What Do Consumers Expect in 2022: Inflation or Deflation?

Posted on November 2, 2022 By Harbourfront Technologies

With the inflation numbers rising these days, one would think that the consumer expectation of future inflation remains high. A recent article published by the Federal Reserve Bank of New York just pointed out the opposite: consumers expect inflation to decrease in the future and the risk of deflation …

Using the Holt-Winters Model for Trading Bitcoin and Gold

Posted on October 30, 2022 By Harbourfront Technologies

Investing in gold and bitcoin can be a great way to diversify your portfolio and protect your wealth. Gold is a physical asset that has been used as a currency for centuries. Bitcoin is a digital asset that was created in 2009. These assets have attracted the attention of traders …

Do Path-Independent Volatilities Exist?

Posted on October 27, 2022 By Harbourfront Technologies

Volatility of an asset is a measure of how much the price of that asset varies over time. In other words, it is a measure of how “risky” an investment in that asset is. The higher the volatility, the greater the risk. There are two main types of volatility: historical …

How Algorithmic Trading Impacts the Markets

Posted on October 21, 2022 By Harbourfront Technologies

Algorithmic trading is a method of executing trades using algorithms, or sets of predetermined rules, to make trading decisions. These algorithms are designed to take into account a variety of market conditions, such as price, volume, and timing. Algorithmic trading is often used by large institutional investors, such as hedge …

How to Account for Slippage in Backtesting

Posted on October 18, 2022 By Harbourfront Technologies

Backtesting is a method used by investors to develop trading systems. It involves testing a trading system on historical data to see how it would have performed in the past. Backtesting can be used to test a wide variety of trading systems, from simple trend-following systems to complex algorithmic trading …

Are Cryptocurrencies Good Diversifiers?

Posted on October 12, 2022 By Harbourfront Technologies

Cryptocurrencies are digital or virtual tokens that use cryptography to secure their transactions and control the creation of new units. Cryptocurrencies are decentralized, meaning they are not subject to government or financial institution control. Bitcoin, the first and most well-known cryptocurrency, was created in 2009. Cryptocurrencies are often traded on …

How High-Frequency Trading Impacts the Markets

Posted on October 9, 2022 By Harbourfront Technologies

High-frequency trading (HFT) is a type of algorithmic trading that uses computer programs to place orders at very fast speeds. High-frequency traders use sophisticated algorithms to analyze market data and make trades based on their predictions. These traders typically trade in large volumes of shares and use very short-term strategies. …

Another Look at the Effectiveness of Technical Analysis

Posted on October 6, 2022 By Harbourfront Technologies

Technical analysis is the study of past price patterns to identify market trends and predict future prices. Technical analysts believe that the collective actions of all participants in the market, including buyers and sellers, producers and consumers, investors and speculators, etc., ultimately determine market prices. Therefore, technical analysis focuses on …

How Monetary Uncertainty Affects Market Volatility

Posted on September 25, 2022 By Harbourfront Technologies

Monetary policy is the process by which a government, central bank, or monetary authority manages the money supply to achieve specific objectives. In most countries, these objectives are stabilization of prices and maintenance of low inflation. Monetary policy is also used to manage economic growth, employment, and exchange rates. Monetary …

A Trading Strategy Based on the Correlation Between the VIX and S&P500 Indices

Posted on September 20, 2022 By Harbourfront Technologies

The VIX is an index that measures the volatility of the S&P 500. It is often referred to as the “fear index” because it spikes when investors are worried about the stock market. The VIX is calculated by using options prices, which are a way to bet on future stock …