নলেজ লাইব্রেরি

The document introduces pairs trading as a market-neutral approach that buys one security and shorts another when their relationship diverges. It distinguishes correlation from cointegration: correlated prices can continue trending apart, whereas a…

The document demonstrates how a simple 20-day moving average crossover strategy on natural gas futures can look compelling in a vectorized backtest, then lose credibility as realism is added. It recommends inspecting intermediate data and plots, checking…

The document explains covariance and correlation as measures of how two variables move together. Covariance indicates the direction of their linear co-movement, while correlation also expresses its strength on a standardized scale from negative one to…

The document explains share prices through the market’s changing expectations of future company earnings and business conditions. It uses an Indian automaker’s valuation expansion and later earnings growth to distinguish price gains driven by a higher…

The document explains the Relative Strength Index as a bounded momentum oscillator derived from recent gains and losses. Its manual calculation example separates price changes into gains and losses, computes an initial simple average, then smooths subsequent…

The document describes automated forex trading as the use of programmed rules to monitor currency markets and place trades. It lays out a development workflow: define entry and exit logic, program the strategy, monitor markets, execute orders, add risk…

The document explains the real effective exchange rate (REER) as an inflation-adjusted, trade-weighted measure of a currency against a basket of trading partners. It describes how a country’s REER can help assess changes in currency strength and trade…

This interview follows an engineer and AI practitioner as she moves into quantitative trading and develops an algorithmic trading desk focused on crypto. Her account highlights a practical learning path: apply statistical and machine-learning methods to…

This article introduces exotic options as contracts whose payoff, exercise conditions, or underlying can differ from standard calls and puts. It describes barrier options, which activate or expire when a price threshold is reached; binary options, which pay…

This interview recounts an investment analyst’s move toward quantitative trading and shares lessons drawn from studying short-selling strategies. The most technical points are to assess market regimes using rebased price series, to treat identifying turning…

This overview explains how standardized futures contracts differ from private forward agreements, and describes contract expiry, delivery months, tickers, margin, and profit and loss. It also introduces futures continuation series, which join successive…

This project studies daily price and volume data for 20 Indian equities selected from sector indices, using observations from October 2010 through December 2018 and a short out-of-sample period in early 2019. It tests three approaches: a short signal based…

This overview answers common questions about algorithmic trading, explaining that algorithms turn inputs and explicit rules into repeatable outputs and can determine trade timing, price, or size. It distinguishes algorithmic strategy design from automated…

The article distinguishes unsystematic risk, which arises from company-specific problems, from systematic risk driven by broad market conditions. It lists causes such as weak management, business model flaws, labor disruptions, operational errors, and debt…

The article describes a repeatable way to develop systematic trading ideas by separating entry research from exit design. The author recommends keeping a standard exit package, such as stops and profit targets, while testing new entry signals. This makes…

Presented as a dialogue with a trading expert, the article outlines a beginner’s path into algorithmic trading: learn a programming language, study markets and strategies, identify potential inefficiencies, then backtest ideas on historical data. It…

The article explains recursion as a function calling itself until it reaches a stopping condition, and distinguishes direct, indirect, tail, and nested recursion. It contrasts recursive approaches with loops, noting that recursion can make naturally…

The article introduces altcoins as cryptocurrencies other than Bitcoin and describes how they emerged to offer different features, address perceived limitations, or serve particular purposes. It discusses smart contracts and decentralized applications,…

The article introduces the Capital Asset Pricing Model as a way to estimate an asset’s expected return from the risk-free rate, the asset’s beta, and the market risk premium. It distinguishes systematic risk, which affects the broader market, from…

The article explains volume-weighted average price (VWAP) as a cumulative average that weights prices by traded volume. It walks through an intraday calculation using minute-level stock data: derive a typical price from each bar’s high, low, and close,…

The article introduces mean reversion through time-series concepts, distinguishing trend, cycles, seasonality, and irregular movements. It explains the intuition of buying when price falls below an average and selling when it rises above one, then relates…

This article outlines a Python workflow for retrieving historical market data through OANDA, storing it locally, and evaluating a simple trading rule. It describes selecting an instrument, date range, and granularity, handling data in chunks, and saving…

This tutorial shows how to retrieve historical foreign-exchange price data with yfinance and inspect it in a Python workflow. It covers daily data for a currency pair, minute-frequency data, and downloading multiple pairs together. The described process…

This project describes a mean-reversion pairs strategy implemented and backtested with quantstrat. It uses a stock pair from the same sector as its example and also introduces a separate example involving commodity futures on different exchanges. The…