Step into the high flying world of dispersion trading. — Before understanding how this strategy works, you must first understand the concept of implied correlation. Implied Correlation Implied correlation is a measure of the expected correlation between individual stocks in a basket, as priced by the options market. It reflects how closely the market expects the price movements of these…

A no-nonsense playbook for navigating the waters of quantitative trading. Hello everyone, unless you’re new here, you may have noticed that all of my posts provide actionable insight with no focus on things that only work in theory. In other words, I put my money where my mouth is. As…

I created the holy grail, everything one could wish for — but learned quite an expensive lesson regardless. Background To understand what I did, we must first learn some things about how stock prices move. Everyone has their own view of how prices move, but a common one — and one…

With prices rising across the globe, it is now a matter of fact that we must all start making more money. Writing code helps with that, so here’s one that is bringing in much-needed cash. If you’ve read my prior articles, you’d know that I prefer income-generation methods that minimize…

Take a behind-the-scenes look into what drives billions on energy trading desks. In just 1 century, the commodities trading market has transformed into a nearly $100 billion industry, delivering record profits on an annual basis. But more interesting than the size of the market is the sophisticated techniques deployed by…

Take a look into how this $11 trillion industry fights to keep its self alive. Before understanding the ingenious tactics deployed by this behemoth machine, it helps to first understand how the industry works: Background — All About Private Equity Private Equity (PE) firms make money by investing in companies that have the potential for growth…

Take a look into the incredible and complex workings behind some of the most powerful funds. You hear stories all the time about how some secretive hedge fund manager set up a complex web of controlled funds to cheat taxes and hide profits. But usually, the story stops there. The…

Take a look into the bond market arbitrage driving billions for quant funds. “Quant Hedge Funds Reap Windfall During 2022 Market Ructions” Headlines like this have been commonplace for years; secretive quantitative hedge funds using obscure strategies to generate large returns. …

The advancements of machine learning has left the world stunned, and no where is that more true than in HFT. Pretend for a moment that you’re a high frequency trader. Your job is to receive orders, assess your holdings, and fulfill the orders based on those holdings. You need to…