Blog Posts

Reinforcement learning (RL) is a branch of machine learning where an agent learns to make decisions by interacting with an environment through trial and error, receiving feedback in the form of rewards. In a trading context, the environment is the financial market, the agent’s actions might be buying, selling, or holding assets, and the reward […]

Gross Domestic Product (GDP) is an important indicator that fundamentals-based traders closely watch. Traders rely on GDP to understand the health and direction of the economy. But how exactly do traders interpret this economic measure, and what role does GDP play in their strategies?   Key Takeaways – How Traders View GDP GDP reveals economic […]

First things first: this article is designed for individuals who incorporate longer-term holds as part of their wealth strategy and are looking for clarity amidst shorter-term market noise.  It’s not intended for those who exclusively trade on shorter time horizons and really know what they’re doing to have consistent success at that. (These traders do […]

Designing and using a reinforcement learning-based trading strategy requires careful consideration of how to train the agent, define its objectives, and be sure it behaves safely and as intended. Here we’re going to look at practical implementation strategies: how to train on market data, how to set reward functions, ways to enforce risk management, and […]

Recent years have seen a surge of retail traders entering markets via zero-commission apps and hype-chasing activity (meme stocks, crypto, etc.). This influx of inexperienced participants created opportunities for sophisticated Wall Street firms to profit from these less experienced traders through information arbitrage, i.e. using superior information and analysis that retail investors lack. Professional traders and […]

A Total Return Swap (TRS) is a financial derivative contract between two parties in which one party agrees to pay the total return of a specific asset, while receiving a fixed or floating interest payment from the other. It enables economic exposure to an asset, such as a bond, loan, equity, or index, without owning […]

Copying successful traders seems like a shortcut to results, but it rarely works out that way. What you’re seeing is just the surface: entries, exits, and maybe a P&L (% returns over a certain past period). What you’re not seeing is the infrastructure, psychology, context, and decision-making process that makes it all work – and […]

When determining whether a currency is overvalued or undervalued, there is no agreed-upon framework.  While traders and governments build models to estimate equilibrium exchange rates, reality is more nuanced – currencies can remain misaligned for years due to politics, policy choices, structural imbalances, regulations, frictions, and other factors.  Let’s break down what influences currency misvaluation, […]

Retiring early is a dream shared by many, but achieved by few. Most people imagine a path paved through tech startups, lucky investments, or perhaps frugal living and index funds.  For the narrator of the story below, however, early retirement didn’t come from minimalist budgeting or Silicon Valley, but from quantitative trading, a high-pressure, high-reward […]

Capital controls – restrictions placed by governments on the flow of capital across borders – have a long and revealing history. They typically emerge not as first-best policy choices but as desperate measures during late-cycle phases of economic and geopolitical stress. Understanding capital controls in a historical context reveals not just their mechanics, but what […]