How Generative AI Will Change the Online Labor Market

Posted on September 13, 2023 By Harbourfront Technologies

ChatGPT is an advanced AI language model developed by OpenAI, designed for natural language processing tasks and human-like text-based conversations. It’s powered by the GPT-3.5 architecture, known for its ability to understand and generate human-like text across a wide range of topics. ChatGPT has applications in chatbots, virtual assistants, content …

Are Stop-Loss Orders Effective in the Cryptocurrency Market?

Posted on September 8, 2023 By Harbourfront Technologies

Stop-loss orders are trading directives utilized to preset a price point at which a trade should be automatically closed. Traders use these orders to define a specific exit level for their positions, which is activated if the market price reaches or surpasses this pre-established point. Essentially, stop-loss orders serve as …

Using Multivariate Functional False Discovery Rate for Testing System Robustness

Posted on September 4, 2023 By Harbourfront Technologies

Data snooping bias is a prevalent challenge in finance, stemming from the extensive exploration of historical financial data to uncover trading strategies and patterns. It occurs when researchers or traders test numerous hypotheses and strategies on historical data until they discover one that appears profitable purely by chance. This process, …

Momentum Trading in Commodity Markets Using Technical Indicators

Posted on August 31, 2023 By Harbourfront Technologies

Momentum strategies, a prevalent trading approach, have also found applicability within commodity markets. These strategies capitalize on the observed tendency of assets to continue their existing trends in the short term, either upward or downward. In commodity markets, momentum strategies involve buying or selling commodities based on their recent price …

How the Airlines Hedge Fuel Costs

Posted on August 27, 2023 By Harbourfront Technologies

The recent rising cost of airline tickets can be attributed in part to the escalating fuel prices, which significantly affect operating expenses for airlines. To counter the adverse impact of fuel price volatility, airlines often adopt a strategic approach known as fuel hedging. This practice involves entering into financial contracts …

Using the VIX for Position Sizing

Posted on August 23, 2023 By Harbourfront Technologies

Position sizing is a critical aspect of trading that directly influences the risk and potential reward of each trade. It involves determining the appropriate amount of capital to allocate to a specific trade based on factors such as account size, risk tolerance, and market conditions. Effective position sizing aims to …

Evaluating Trading Strategies Using Economic Criteria

Posted on August 18, 2023 By Harbourfront Technologies

In the realm of trading strategy development, assessing strategy effectiveness can be approached through two distinct avenues. One approach involves evaluating the efficacy of a predictive method by employing statistical measures to gauge its accuracy and predictive power. Alternatively, effectiveness can be gauged by directly evaluating the strategy’s profit and …

What Caused the Increase in Correlation?

Posted on August 15, 2023 By Harbourfront Technologies

Correlation in the stock market refers to the statistical relationship between the price movements of different stocks or assets. It measures the degree to which these price changes tend to occur together or in opposite directions over a specific period. Positive correlation implies that stocks move in the same direction, …

Filtering Stocks Based on Volatilities

Posted on August 11, 2023 By Harbourfront Technologies

Stock volatility refers to the degree of variation in a stock’s price over time. It is a measure of the magnitude of price fluctuations, reflecting the market’s uncertainty and the potential for rapid changes in an asset’s value. High stock volatility signifies greater price swings, indicating a higher level of …

Use of the Real-World Measure in Portfolio Management

Posted on August 6, 2023 By Harbourfront Technologies

In the realm of finance, the risk-neutral measure takes precedence in pricing financial derivatives. However, the real-world measure remains significantly valuable and indispensable across various domains. It plays a pivotal role in risk management and asset/liability applications, facilitating comprehensive evaluation and mitigation of risks. Real-world measures are useful for simulation-based …