## Our view on EURUSD

Download PDF A persisting trend DISCLAIMER: The EURUSD pair is an exception to general FX notation. We comply with the quoting convention adopted in the industry: when the Dollar strengthens against the Euro, EURUSD moves lower, and vice versa. For charting purposes, however, we use the USDEUR time series. The Read more…

## Pairs Trading: Building a Backtesting Environment with Python

Download PDF Introduction Statistical arbitrage is a class of trading strategies that profit from exploiting what are believed to be market inefficiencies. These inefficiencies are determined through statistical and econometric techniques. Note that the arbitrage part should by no means suggest a riskless strategy, rather a strategy in which risk Read more…

## The Banker’s Toolkit n.3 – How to value a Fintech company

Download PDF Introduction about Fintech In the years following the financial crisis of 2008, regulators have focused their attention on making the financial system a much safe a place as possible, in particular adopting new regulations for traditional financial institutions. Meanwhile, in places like Sillicon Valley, London, and in parts Read more…

## How to define a Stop Loss

Download PDF Introduction One of the most basic tools used by traders to manage risk is a simple order given to a machine, the stop-loss order. Despite being accessible to all retail traders through their online brokers, it is often neglected or misused. In the first part of this article Read more…

## Stock Exchanges: who will be the next champion?

Download PDF Introduction Stock exchanges are sometimes considered simply as marketplaces where any investor with a brokerage account can participate in transactions with basic financial securities such as stocks or bonds, or more complex ones such as ETFs and derivatives. However, stock exchanges are also businesses that, like any other Read more…

## Put-writing Strategies as an Alternative to Low-Volatility Equity Investments

Equity put-option writing strategies represent an alternative to attain equity-like returns with less volatility. In fact, by writing a put-option the seller collects the option premium and gains exposure to value changes in the underlying equity. The Chicago Board Options Exchange (CBOE) publishes already since 2007 daily return data for Read more…

###### Markets

“Make all the trades through the dark pools so it masks what we’re doing. That way we’ll preserve our head start, which will not be a long one.” This is how Bobby Axelrod instructs his traders to get rid of his natural gas positions in the latest episode of the Read more…

## All Cold on the Western Front: Trading the Oil Distillates Market in the Age of Climate Change

Introduction In the midst of a particularly cold North American winter induced by an unexpected southwards movement of the polar vertex in late December 2017, New York Harbor Heating Oil surged nearly 15% from its December low through the end of January. This important petroleum middle distillate often used for Read more…

## How to trade Japanese Elections

Introduction The Japanese PM dissolved the lower parliament on 28th September, initiating the process for the snap elections to be held on October 22nd. We believe that it is a move to secure a fresh mandate in the parliament after Mr. Abe’s association with a series of scandals over the Read more…

## How to Manipulate the Bitcoin Market (2/3)

This article is the follow up to “How to Manipulate the Bitcoin Market (1/3)”. In the second part, we want to show how the spikes in price between the end of May and the first half of June 2016 were the result of just a few investors who used huge Read more…

## Special Report – Oil: an impossible trade

Oil has long been one of the main drivers of the worldwide economy and for this reason it is closely watched by all investors and traders. The central role of what, back in the days, was called the “Black gold” is given by its high cross asset correlation. It has Read more…

Not long ago, two major oil-producing countries (Russia and Saudi Arabia) reached an agreement, according to which the stake of output of those countries was capped at January-2016 levels. The move was very unexpected, since no one had bet that the deal would be reached, thus oil prices went through Read more…

## Using Fourier transform to detect large orders: Part 1

In the last two decades, advancements in information technology have contributed in the creation of virtual marketplaces where buyers and sellers are brought together through an electronic trading platform. Electronic trading is rapidly replacing human trading in global securities markets. Therefore, human best-execution practice has naturally evolved into automated execution Read more…