Trading News

In trading, productivity is essential. Traders need to make quick decisions, analyze vast amounts of data, and stay ahead of changing market trends.  You have only so much time and so much energy. Boosting productivity can lead to better decision-making, higher profits, and a more balanced lifestyle.   Key Takeaways – Productivity & Time Management […]

Exotic financial trading strategies go beyond traditional asset classes like stocks, bonds, and plain vanilla options. They often feature complex structures, unusual payoffs, and multiple market dimensions. We’ll discuss what “exotic” strategies are and examples of them.   Key Takeaways – Exotic Strategies “Exotic” strategies use complex, customized payoffs that depend on barriers, paths, or […]

Market impact is a concept in financial markets, referring to the effect a market participant has when buying or selling an asset. It is an essential consideration for large investors, such as financial institutions, as it can significantly influence investment decisions and overall profitability. This article will explore the nuances of market impact, its relationship […]

Are machines a substitute for human intuition in markets? The answer is layered. Machines – by which we mean quant models, algorithms, and AI – absolutely excel at certain aspects of markets, but they also stumble where human intuition remains hard to code.   Key Takeaways – Can Machines Really Beat Human Intuition in Markets? […]

After over 60,000 hours in the markets, this is what I’ve learned. These reflections are just my own perspective. There are many viable ways of doing things. They’re not definitive answers, but observations you may find useful as you develop/refine your own approach. Take what resonates, question what doesn’t, and remember that the ultimate test […]

Valuation is one of the most popular lenses through which to view the stock market. Whenever it becomes expensive you see headlines like this: Valuation metrics like the price-to-earnings (P/E) ratio are nonetheless limited when it comes to market timing.  Valuations demonstrate strong correlations with long-term returns, but they offer virtually no insight into short-term […]

Global macro trading and investing has traditionally been the domain of hedge funds, where managers trade broad economic and policy trends by shifting exposure across assets, asset classes, countries/regions, and currencies.  These strategies often include both long and short positions, derivatives (e.g., options, futures, swaps), and fast repositioning to take advantage of opportunities as they […]

Rising real yields (nominal yields minus inflation expectations) are often the market’s biggest wrecking ball because they represent a higher risk-free rate in “real” (inflation-adjusted) terms.  That reprices everything at once: Stocks – Future cash flows are discounted more heavily, hurting valuations (especially long-duration growth stocks). Bonds – Prices fall as yields rise. The longer […]

For traders and investors looking for returns and improved capital efficiency beyond traditional stock-only portfolios, a growing number of exchange-traded funds (ETFs) offer strategies that blend core equity exposure with futures-based or options-based overlays.  Traditionally, futures and options overlays are more active strategies pursued by both individual and institutional traders. These funds use derivatives to […]

This article is based on AQR’s paper A Half Century of Macro Momentum (PDF download), which tests a systematic global macro strategy running from 1970 to 2016, using backtested data. Instead of momentum based on price trends of the assets themselves, it applies momentum concepts to macroeconomic indicators (business cycles, monetary policy, trade, and risk […]