Arbitrage Trading in the Cryptocurrency Market

Posted on July 5, 2022 By Harbourfront Technologies

Cryptocurrency is a digital or virtual asset that uses cryptography to secure its transactions. 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 decentralized exchanges and can also be …

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Turtle Trading System Revisited: Is It Still Profitable?

Posted on July 2, 2022 By Harbourfront Technologies

The Turtle trading system is a system where a group of traders follow specific rules to buy and sell commodities. The rules are based on the observations of Richard Dennis, who believed that anyone could be taught to trade successfully if they followed a set of simple rules. The Turtles …

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How Well Overfitted Trading Systems Perform Out-of-Sample?

Posted on June 29, 2022 By Harbourfront Technologies

In-sample overfitting is a serious problem when designing trading strategies. This is because a strategy that worked well in the past may not work in the future. In other words, the strategy may be too specific to the conditions that existed in the past and may not be able to …

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Trading Bitcoin Systematically: Is It Possible?

Posted on June 26, 2022 By Harbourfront Technologies

Bitcoin is a decentralized digital currency, without a central bank or single administrator, that can be sent from user to user on the peer-to-peer bitcoin network without the need for intermediaries. Transactions are verified by network nodes through cryptography and recorded in a public distributed ledger called a blockchain. Bitcoin …

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Pairs Trading Using the Hurst Exponent of Product

Posted on June 23, 2022 By Harbourfront Technologies

Pairs trading is a market-neutral trading strategy that seeks to profit from the relative movements of two correlated assets. The key to pairs trading is finding two assets that are highly correlated. This can be done by looking at historical data or using a correlation coefficient. We can also use …

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What Causes Inflation? the Reason Behind the Current Inflation

Posted on June 20, 2022 By Harbourfront Technologies

Inflation is an economic phenomenon characterized by a sustained increase in the general price level of goods and services in an economy. The main determinants of inflation are: Money supply: An increase in the money supply leads to an increase in prices as more money chases the same number of …

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Statistical Arbitrage in the Sport Market

Posted on June 17, 2022 By Harbourfront Technologies

Statistical arbitrage is a trading strategy that exploits the differences in prices between different asset classes. It has been employed, however, not only in the financial market but also in sports betting. Sports betting is a form of gambling that involves wagering on the outcome of a sporting event. Of …

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Pricing Convertible Bonds Using a Neural Networks Based Approach

Posted on June 14, 2022 By Harbourfront Technologies

A convertible bond is a bond that can be converted into a certain amount of the company’s stock at specified prices and dates. Convertible bonds are usually issued by young, growing companies that want to raise capital without giving up too much control of their company. For example, a company …

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Using VIX Futures Term Structure for Trading

Posted on June 11, 2022 By Harbourfront Technologies

The volatility index, VIX, is a measure of the stock market’s expectation of volatility over the next 30 days. The VIX is calculated by using the prices of options on the S&P 500 Index. The VIX futures are derivative contracts that allow investors to bet on the future values of …

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Corporate Job Postings as Alternative Data

Posted on June 8, 2022 By Harbourfront Technologies

The last decade has seen the rise in popularity of alternative data in financial analysis. This data is generally defined as any information that is not typically used in financial analysis, such as social media data, satellite imagery, and weather data. While alternative data has been used by hedge funds …

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