Quantitative Analysis in Forex - The Balance

What is Trading Slippage & Modelling Strategy Execution Without the Full Tick Data Stream #fintech #trading #algotrading #quantitative #quant #fx #spot #forex #hft

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Comparative analysis of 10 flat trading strategies #fintech #trading #algotrading #quantitative #quant #stock #forex #fx $spx $spy

Comparative analysis of 10 flat trading strategies #fintech #trading #algotrading #quantitative #quant #stock #forex #fx $spx $spy submitted by silahian to quant_hft [link] [comments]

Don't Be Fooled By The Fancy Name -- Statistical Arbitrage Is A Simple Way To Profit #fintech #trading #algotrading #quantitative #quant #hft #financial #strategies #arbitrage #forex #fx

Don't Be Fooled By The Fancy Name -- Statistical Arbitrage Is A Simple Way To Profit #fintech #trading #algotrading #quantitative #quant #hft #financial #strategies #arbitrage #forex #fx submitted by silahian to quant_hft [link] [comments]

In HFT, are strategies (e.g. optimal execution, market making) purely mathematical or do they mainly rely on the technology (e.g. speed, collocation)? #fintech #trading #algotrading #quantitative #quant #quants #forex #fx #banks #hedgefunds #hft

In HFT, are strategies (e.g. optimal execution, market making) purely mathematical or do they mainly rely on the technology (e.g. speed, collocation)? #fintech #trading #algotrading #quantitative #quant #quants #forex #fx #banks #hedgefunds #hft submitted by silahian to quant_hft [link] [comments]

What does No Slippage in Forex really mean? #fintech #trading #algotrading #quantitative #quant #forex #fx #strategies #microstructure #marketmaking

What does No Slippage in Forex really mean? #fintech #trading #algotrading #quantitative #quant #forex #fx #strategies #microstructure #marketmaking submitted by silahian to quant_hft [link] [comments]

e-Forex Magazine | Machine learning stirs up competition in FX Algo Trading

fintech #algotrading #hedgefunds #quants #hft

e-Forex Magazine | Machine learning stirs up competition in FX Algo TradingIvy Schmerken Though capital markets firms have been adopting artificial intelligence and machine learning to train algorithms for equity trading, recently this trend has expanded to foreign exchange. Ivy Schmerken, Editorial Director at Flextrade Systems, has written widely about this topic and we asked her to revisit it for e-Forex. By crunching vast quantities of data by computer, machine learning algorithms can identify hidden patterns in past data and learn to forecast stock market returns or FX currency pairs. Large banks have been investing millions into advanced technologies such as AI and machine learning to capture a bigger share of the algo trading market.
JP Morgan developed a new algorithm dubbed DNA – or Deep Neural Network for Algo Execution to merge what a multitude of algos do into a single strategy, allowing the framework to decide how a client’s order should be executed, reported Reuters .....
Continue reading at: https://www.e-forex.net/articles/aug-2020-machine-learning-stirs-up-competition-in-fx-algo-trading.html
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Market Making for "Forex Traders"

Hi I am quant. I do most of my research in portfolio and risk management techniques and some stuff in high frequency. A lot of people I knew from high school and college have gone off and become "forex traders / stock gurus". They are always asking me for advice even though I mostly work on stuff that's completely separate nor do use technical indicators (unless high frequency), or trade equity for value. And I got frustrated with people asking me if I think this company is overvalued or if I want to make money trading Forex.
But I became interested in what they do and more importantly how the make their trading decisions. After speaking to a bunch of people, hopping on zoom with them to see how they "mark up" a graph, and watching their videos I have come to the conclusion that they are using complex trading strategies to "leisurely". But it works for most of the time. The reason why it works it that there are less outlier scenarios in FX than other market. And most importantly there is always liquidity to reduce slippage or the chance that the stop loss doesn't get triggered. In theory the best markets to track using TA are either FX or commodities (probably FX).
At first I thought it was funny to talk to these guys, but then it hit me. If I had a market making strategy and followed their trades. I could pick the best prices to provide liquidity at (in my benefit). Here are the problems. The size of these "forex traders" deal flow is probably so small that there ins't that much room for me to make a profit solely reading their future trades and then providing liquidity. But if I paid to be the primary liquidity provider for their retail broker similar to how RobinHood sells trades to give 0 fees, there may be a possibility that the percentage I would get from making the market may be enough. Do you guys think that is possible.
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Arbitrage, HFT, Quant and Other Automatic Trading Strategies in FX | Finance Magnates

fintech #trading #algotrading #quantitative #quant

Challenges when implementing quant strategies in FX Lack of data availability in foreign exchange trading, when compared to equities, is one of the major obstacles in implementing quant strategies in FX. Since the Forex market is regarded as an over-the-counter (OTC) market and does not transact on a centralized exchange, there is little uniform data available. The FX ECNs only publish approximately 15% of their data while the rest of the market trades “in the dark”.
Only an estimated 6% of the market is covered by good quality data, and algos need to have data, such as volume traded per unit of time, in order to properly slice a large order into smaller pieces. Also, many traders underestimate the cost for quality data. You can get some of the historical tick by tick data dating back to 1992, but it will cost you tens of thousands of dollars.How to implement auto trading strategies on margin FX brokers’ platforms? So is it possible to implement alpha generation algorithms with .....
Continue reading at: https://www.financemagnates.com/analysis-retail-fx/arbitrage-hft-quant-and-other-automatic-trading-strategies-in-fx/
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Why Trading Execution and High-Frequency Trading Algorithms Are Gaining Popularity

fintech #trading #algotrading #quantitative #quant

Why Trading Execution and High-Frequency Trading Algorithms Are Gaining PopularityTypes of Algorithm Trading Strategies in FX Talking Points:The rise of algorithms in FXExecution algorithm and high-frequency trading dominate the marketThe difference between high-frequency trading and execution algorithm When looking at algorithmic trading, we can see that it has become more and more popular because of its speed and ability to minimize risk. It accounts for a large portion of trades, which is why it is important for traders to understand the different trading strategies. What Is the Purpose for Algorithm Trading Strategies? Since algorithm trading is based on a rule-based process, it has the ability to avoid human behavioral biases that can otherwise create large risks and losses. However, to successfully use this method, rules need to be pre-decided, and there is absolutely no place for subjectivity hence, why it is referred to as a rule-based process. What Are the Main Types of Al.....
Continue reading at: https://www.dailyfx.com/forex/education/trading_tips/daily_trading_lesson/2019/05/09/Why-Trading-Execution-and-High-Frequency-Trading-Algorithms-Are-Gaining-Popularity.html
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JPMorgan Details Next-Gen FX Trading Algos | Finance Magnates

fintech #trading #algotrading #quantitative #quant

With the ever-growing electrification of the foreign exchange market, the use of machine learning tools is gathering speed and changing the landscape once more. While early versions of algorithms have been mostly comprised of buy and sell orders with relatively straight forward parameters, the evolution of a truly quantitative approach towards market making is making strides in the eFX space.
After the simple first generation of algorithms evolved into more sophisticated strategies which provided increasingly quantitatively driven approach to markets, investors started using dynamic pricing derived from mathematical theory.
The next step was to begin using order break-up strategies to minimize market impact and ultimately deliver to investors better entry levels on their positions. Slippage due to large orders is traditionally one of the major issues for currency traders. London Summit 2019 Launches the Latest Era in FX and Fintech – Join Now The latest generation of algorithms.....
Continue reading at: https://www.financemagnates.com/institutional-forex/execution/jpmorgan-details-next-gen-fx-trading-algos/
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Tips and tricks for manipulating the market (and getting punished for it) - BSIC | Bocconi Students Investment Club

fintech #trading #algotrading #quantitative #quant #quants #hft ##markets #hedgefunds #fx #forex

Tips and tricks for manipulating the market (and getting punished for it) - BSIC Market manipulation is nothing new and has been around for as long as markets have existed. Most methods rely on shifting perceptions about the marketplace, such as trade volumes, demand and supply on the order books, and other key determinants. Nevertheless, today’s increasingly complex computerized markets allow for new and innovative methods of market manipulation. Because of the fast pace of innovation and sometimes overwhelming complexity behind trading activity, regulation has at time lagged behind. Below are some explanations of different forms of market manipulation, and what has been done to address these behaviors. Spoofing & Layering Spoofing is a strategy whereby one places limit orders, and removes them before they are executed. By spoofing limit orders, perpetrators hope to distort other trader’s perceptions of market demand and supply. As an example, a large bid limit order could be .....
Continue reading at: http://www.bsic.it/marketmanipulation/
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High-Frequency Trading and Its Market Impact

fintech #trading #algotrading #quantitative #quant #hft #forex #fx #crypto #gbpusd

High-Frequency Trading and Its Market Impact Does HFT actually affect market quality at all? How do HFT activities influence market quality? It is significant to market regulators investors, and academic researchers to answer these questions considering the technological development and exponential increase in the sophistication of HFT strategies.
While interpreting the speed advantage of high-frequency traders merely as an informational advantage, HFT is just another form of informed trading which improves the price discovery process. This speed, however, may be used for other purposes as well. The decline in transaction costs due to extensive utilization of technologies is one of the valuable functions of HFT. While reducing errors and letting machines oversee everyday trading activities human traders can enhance attention spans in implementing their trading strategies.
Recent studies indicate that HFT can be helpful in improving market quality. However, the market impact of H.....
Continue reading at: https://www.quantinsti.com/blog/how-high-frequency-trading-impacts-market-quality/
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Demystifying Algorithmic Trading in the Forex World - Markets Media

fintech #trading #algotrading #quantitative #quant #forex #fx #algorithmic

Demystifying Algorithmic Trading in the Forex WorldThis is the first article in a series sponsored by Thomson Reuters Is the time ripe now for using algorithms to trade foreign exchange?
After decades of being used to trade equities and equity derivatives, and as institutional money managers move away from equities and into new asset classes such as forex, can algorithmic trading strategies be incorporated? Equity algorithms have had tremendous lead time to be built, adjusted and implemented in trading. Not to mention that equity algorithms have evolved from the simplest volume-based to the most complex that adjust themselves when seeking liquidity.
But there is a world of difference between the equity markets and the foreign exchange markets. In stocks, there are myriad public and private trading venues from which to use algorithms – upwards of 40 while the forex market is traded by or on a handful of bank trading desks – also known also known as a principal bank trading market.....
Continue reading at: https://www.marketsmedia.com/demystifying-algorithmic-trading-in-the-forex-world/
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JPMorgan Details Next-Gen FX Trading Algos | Finance Magnates

fintech #trading #algotrading #quantitative #quant

With the ever-growing electrification of the foreign exchange market, the use of machine learning tools is gathering speed and changing the landscape once more. While early versions of algorithms have been mostly comprised of buy and sell orders with relatively straight forward parameters, the evolution of a truly quantitative approach towards market making is making strides in the eFX space.
After the simple first generation of algorithms evolved into more sophisticated strategies which provided increasingly quantitatively driven approach to markets, investors started using dynamic pricing derived from mathematical theory.
The next step was to begin using order break-up strategies to minimize market impact and ultimately deliver to investors better entry levels on their positions. Slippage due to large orders is traditionally one of the major issues for currency traders. London Summit 2019 Launches the Latest Era in FX and Fintech – Join Now The latest generation of algorithms.....
Continue reading at: https://www.financemagnates.com/institutional-forex/execution/jpmorgan-details-next-gen-fx-trading-algos/
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“Liquidity is the new leverage”: - 13D Research

fintech #trading #algotrading #quantitative #quant #hft #forex #fx #crypto #gbpusd

“Liquidity is the new leverage”: The above quote comparing liquidity to leverage comes from Goldman Sachs’ head of Global Credit Strategy, Charles Himmelberg. Historically, leverage “is the tinder that turns a financial fire into an inferno,” as The Financial Times put it recently. However, since February’s flash crash, Himmelberg has again and again sounded the alarm that the algorithmic transformation of markets means liquidity, not leverage, should be the preeminent, catalytic concern as quantitative tightening progresses and volatility returns. “I routinely field questions from clients asking where the risks are building up, and this is the one I worry about,” he told The FT earlier this month. “Financial markets have changed pretty dramatically since the crisis.”
In these pages, we have sought to understand the implications of the algorithmic and passive revolution, one of the most profound changes to the global financial system in history. And we keep coming back to liquidity.....
Continue reading at: https://latest.13d.com/liquidity-new-leverage-regulation-algorithmic-investing-qt-bond-equity-markets-7b7f97c57cc5
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26 Stock Market Strategies That Beat Buy And Hold • Decoding Markets

fintech #trading #algotrading #quantitative #quant #stock #forex #fx $spx $spy

26 Stock Market Strategies That Beat Buy And Hold • Decoding Markets Profitable stock market strategies are not easy to come by. One proven path is to seek out stock market anomalies.
A stock market anomaly is a rate of return or investment strategy that seems to defy the efficient market hypothesis.
Today, most investors agree that markets are fairly efficient even if they don’t believe in the purest form of market efficiency.
But the belief that markets are not totally efficient drives many professionals in the search for new market edges and inefficiencies.
In fact, the last 20 or so years has seen the amount of research into stock market strategies and anomalies explode.
Take a look at a website like SSRN.com and you will find thousands of academic papers and journals investigating stock market anomalies.
I love testing and reading about new strategies and in this post, you’ll learn about some of the most interesting and well known strategies that I’ve come acros.....
Continue reading at: https://jbmarwood.com/stock-market-anomalies/
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What does No Slippage in Forex really mean? – Forex Markets Live

fintech #trading #algotrading #quantitative #quant #forex #fx #strategies #marketmaking

What does No Slippage in Forex really mean? – Forex Markets Live Slippage in Forex is when a non-limit order isn’t executed at the intended price. This is usually happening during times of high volatility and often during a news event. This would indicate a market condition and probably something that a Forex Broker has little control over. Then why do so many Forex Brokers make a claim they offer no slippage? No Slippage has become a marketable phrase used by brokers like ECN or STP.
In the United States, Forex Brokers are prohibited from claiming no slippage unless they can demonstrate that all orders on its platform were executed at the original price and no requotes were given. US Brokers are also prohibited from making any price adjustments ever if they want to make this claim. The fact that regulators in the US saw how much these claims were being made and instituted this rule back in 2012.
Some brokers are very transparent about slippage and the fact that they have little.....
Continue reading at: https://forexmarketslive.com/what-does-no-slippage-in-forex-really-mean/
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FX carry strategies (part 2): Hedging | Systemic Risk and Systematic Value

fintech #trading #algotrading #quantitative #quant #fx #forex #hft #financial

FX carry strategies (part 2): Hedging There is often a strong case for hedging FX carry trades against unrelated global market factors. It is usually not difficult to hedge currency positions – at least partly – against global directional risk and against moves in the EURUSD exchange rate. The benefits of these hedges are [1] more idiosyncratic and diversifiable currency trades and, [2] a more realistic assessment of the actual currency-specific subsidy or risk premium implied by carry, by applying hedge costs to the carry measure. Empirical analysis suggests that regression-based hedging improves Sharpe ratios, reduces risk correlation and removes downside skews in the returns of global FX carry strategies. Hedging works well in conjunction with “economically adjusted” FX carry and even benefits the performance of relative FX carry strategies that have no systematic risk correlation to begin with.
This post is based on proprietary research of Macrosynergy LLP and SRSV Ltd. FX car.....
Continue reading at: http://www.sr-sv.com/fx-carry-strategies-part-2-hedging/
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JPMorgan Details Next-Gen FX Trading Algos | Finance Magnates

fintech #trading #algotrading #quantitative #quant

With the ever-growing electrification of the foreign exchange market, the use of machine learning tools is gathering speed and changing the landscape once more. While early versions of algorithms have been mostly comprised of buy and sell orders with relatively straight forward parameters, the evolution of a truly quantitative approach towards market making is making strides in the eFX space.
After the simple first generation of algorithms evolved into more sophisticated strategies which provided increasingly quantitatively driven approach to markets, investors started using dynamic pricing derived from mathematical theory.
The next step was to begin using order break-up strategies to minimize market impact and ultimately deliver to investors better entry levels on their positions. Slippage due to large orders is traditionally one of the major issues for currency traders. London Summit 2019 Launches the Latest Era in FX and Fintech – Join Now The latest generation of algorithms.....
Continue reading at: https://www.financemagnates.com/institutional-forex/execution/jpmorgan-details-next-gen-fx-trading-algos/
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Using Quadratic Discriminant Analysis To Optimize An Intraday Momentum Strategy

fintech #trading #algotrading #quantitative #quant #hft #forex #fx #crypto #gbpusd

Using Quadratic Discriminant Analysis To Optimize An Intraday Momentum Strategy By Lamarcus Coleman
In this post, we will create an intraday momentum strategy and use QDA as a means of optimizing our strategy. We'll begin by reviewing Linear Discriminant Analysis or LDA and how it is associated with QDA, gain an understanding of QDA and when we might implement this technique instead of Linear Discriminant Analysis. We will then create our intraday momentum strategy using data on the eMini S&P 500 futures and apply our QDA analysis to it to improve our trading strategy.
Let's get started! Linear Discriminant Analysis Review Recall that the purpose of using machine learning techniques is so that we are able to make better inferences and predictions from our data. Thus, the intent of machine learning is analogous to that of implementing a quantitative trading workflow. In quantitative trading, our goal is to eliminate cognitive biases toward the end of basing our decisions o.....
Continue reading at: https://www.quantinsti.com/blog/quadratic-discriminant-analysis-optimize-intraday-momentum-strategy/
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Why Trading Execution and High-Frequency Trading Algorithms Are Gaining Popularity

fintech #trading #algotrading #quantitative #quant

Why Trading Execution and High-Frequency Trading Algorithms Are Gaining PopularityTypes of Algorithm Trading Strategies in FX Talking Points:The rise of algorithms in FXExecution algorithm and high-frequency trading dominate the marketThe difference between high-frequency trading and execution algorithm When looking at algorithmic trading, we can see that it has become more and more popular because of its speed and ability to minimize risk. It accounts for a large portion of trades, which is why it is important for traders to understand the different trading strategies. What Is the Purpose for Algorithm Trading Strategies? Since algorithm trading is based on a rule-based process, it has the ability to avoid human behavioral biases that can otherwise create large risks and losses. However, to successfully use this method, rules need to be pre-decided, and there is absolutely no place for subjectivity hence, why it is referred to as a rule-based process. What Are the Main Types of Al.....
Continue reading at: https://www.dailyfx.com/forex/education/trading_tips/daily_trading_lesson/2019/05/09/Why-Trading-Execution-and-High-Frequency-Trading-Algorithms-Are-Gaining-Popularity.html
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Demystifying Algorithmic Trading in the Forex World - Markets Media

fintech #trading #algotrading #quantitative #quant #forex #fx #algorithmic

Demystifying Algorithmic Trading in the Forex WorldThis is the first article in a series sponsored by Thomson Reuters Is the time ripe now for using algorithms to trade foreign exchange?
After decades of being used to trade equities and equity derivatives, and as institutional money managers move away from equities and into new asset classes such as forex, can algorithmic trading strategies be incorporated? Equity algorithms have had tremendous lead time to be built, adjusted and implemented in trading. Not to mention that equity algorithms have evolved from the simplest volume-based to the most complex that adjust themselves when seeking liquidity.
But there is a world of difference between the equity markets and the foreign exchange markets. In stocks, there are myriad public and private trading venues from which to use algorithms – upwards of 40 while the forex market is traded by or on a handful of bank trading desks – also known also known as a principal bank trading market.....
Continue reading at: https://www.marketsmedia.com/demystifying-algorithmic-trading-in-the-forex-world/
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Forex Quant Best Target Tool FxPro Quant - Building a trading strategy Saeed Amen On FX Quant Strategy - Building Systematic Trading Models Building a MACD strategy with FxPro Quant Building an MA crossover strategy in FxPro Quant Creating Complex Strategies with FxPro Quant Webinar

Forex trading manager with API that provides quantitative algorithmictrading, Forex trading signals from Forex news forecast. Challenges when implementing quant strategies in FX Lack of data availability in foreign exchange trading when compared to equities is one of the major obstacles in implementing quant strategies in FX. Since the Forex market is regarded as an over-the-counter (OTC) market, and does not transact on a centralized exchange, there is little uniform data available. The FX ECNs only publish ... FXPro Quant helps you get started & create Forex trading strategies for you. FxPro Quant, a user-friendly algorithmic strategy builder. This article is originally referred from FXPro News. Trading algorithms are sets of trading instructions installed on a platform with the purpose of monitoring the market for specific conditions. When pre-set parameters are met, trades are executed ... FX Quant > Home. Welcome! FX Quant is specialized in quantitative-algorithmic trading within the global Forex markets. We offer high quality services to meet the requirements of the world's most demanding traders and investors, from Forex trading research, to separately managed accounts for accredited investors. Download the Forex Quant Strategy. About The Forex Technical Indicators Used. The Alligator is a technical indicator by Bill Williams, introduced in 1995. The indicator is comprised of three lines that are overlaid on the activity chart. The lines represent the jaw, the teeth and the lips of the Alligator. In the rest of this article, I will identify 25 places online, where you might find some profitable quant trading strategies and ideas: 1. SSRN – Social Sciences Research Network . SSRN, the Social Sciences Research Network contains a vast amount of high quality, academic information and there are plenty of interesting journals and papers on there relating to finance and trading. If you just ... Quantitative analysis has a place in the FX market just like any other market. You are likely familiar with different forms of quantitative analysis even if you do not consider yourself a quant, which is someone that approaches markets from a quantitative standpoint. A simple financial ratio such as wrist reward, earnings-per-share or something more difficult like options pricing and ...

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Forex Quant Best Target Tool

This video shows you how to build a moving average crossover strategy within the FxPro Quant tool. FxPro Quant Strategy Builder is an innovative tool designed to simplify the process of developing trading strategies. Quant makes it easy to create Trading A... Best FX Trading Strategies ... How quant trading strategies are developed and tested w/ Ernie Chan - Duration: 1:00:39. Chat With Traders 82,627 views. 1:00:39. FOREX: How To Trade Pure PRICE ... Saeed Amen, Vice President, Quantitative Strategy, Nomura discusses building systematic trading models for trading FX spot and FX options at Global Derivatives 2013. He shares his insights on ... How quant trading strategies are developed and tested w/ Ernie Chan - Duration: 1 ... Forex Trading Simple Strategies, I Made $11000 in 3 months - Duration: 14:54. Janna FX 223,072 views. 14:54 ... FxPro Quant Strategy Builder is an innovative tool designed to simplify the process of developing trading strategies. Quant makes it easy to create Trading A...

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