Blog Posts

In trading, there are countless variables that can impact the outcome of any trade, so intuition can be a reliable tool in many circumstances. For experienced traders, it can provide an intuitive edge – guiding them beyond data and analytics. But what really is intuition, and how does one use it in trading?   Key […]

Trading success isn’t just about pure analysis. At its core, successful trading often requires a dose of creativity. This original thinking capability, which allows individuals to birth fresh ideas, can be key.   Key Takeaways – Creativity in Trading While traditional schooling emphasizes memory and rule-following, real-world success often rewards creativity, intuition, and strategic thinking. […]

We all know stories about Enron, Worldcom, Wirecard, and other large companies that, suffice to say, didn’t pan out for traders and investors betting on their success. They weren’t the first and won’t be the last large companies to fall. What happens to the broader market and economy in such circumstances? A stock that constitutes […]

Building trading and investing algorithms involves a blend of financial theory, mathematics, programming, and data analysis. These algorithms are designed to make trading decisions based on certain criteria, which can include any number of factors based on the underlying cause-effect relationships governing the decisions. Building trading and investing algorithms is a complex, iterative process that […]

In a separate article, we covered the current status of the basic reserves today; namely, the USD, EUR, JPY, GBP, CNY, and gold, as the main few. In this article, we’ll cover reserve currency history as well as reserve currency status, the benefits it brings, and how it’s lost. We are currently in a precarious […]

The non-linear relationship between losses and the gains required to recover those losses is an important concept in portfolio management. For example: A 10% loss requires an 11% gain to recover. A 20% loss requires a 25% gain to recover. A 50% loss requires a 100% gain to recover. Mathematically, if “L” is the loss […]

Auto-callables are complex savings instruments that offer a bond-like fixed return, crafted by selling stock options.   Key Takeaways – Auto-Callables Auto-callables are savings instruments that offer fixed returns similar to bonds, created by selling stock options, primarily on broad stock market indices. They attract investors with their potential for higher yields and early redemption […]

In international investment, currency risk is a significant concern, which leads to the concept of FX hedging. When investors from one country, such as Japan, buy foreign bonds, they must exchange their domestic currency (JPY) for another (such as USD or EUR). This exposes them to foreign exchange (FX) risk, which many prefer to avoid. […]

Quantum algorithms promise to deliver faster and more accurate solutions to financial optimization problems. We look at quantum algorithms and their application in various financial optimization problems and their edge over classical algorithms.   Key Takeaways – Quantum Algorithms in Financial Optimization Problems Quantum algorithms leverage quantum superposition and interference to provide faster and more […]

Quantum Game Theory is an extension of classical game theory, which incorporates the principles of quantum mechanics. Classical game theory has been a cornerstone in economic and social sciences. The quantum version of game theory offers a different perspective, especially when it comes to understanding complex financial systems.   Key Takeaways – Quantum Game Theory […]