Stock Trading News

Extended Mathematical Programming (EMP) is a framework that allows for the formulation and solution of complex optimization problems by integrating various programming paradigms, such as quadratic, nonlinear, mixed integer, and stochastic programming. This method extends beyond traditional linear and nonlinear programming techniques, which allows for a more nuanced handling of real-world financial scenarios.   Key […]

Nonlinear programming (NLP) is a mathematical optimization technique for solving complex problems where the objective function or the constraints are nonlinear. In trading and investing, NLP is used in portfolio optimization, risk management, and identifying trading strategies that maximize returns or minimize risk.   Key Takeaways – Nonlinear Programming in Trading & Investing Better Optimization […]

Quadratic programming (QP) is a type of mathematical optimization used in portfolio management and trading/investment strategies. Its primary function is to optimize asset allocation to achieve the best possible risk-adjusted returns.   Key Takeaways – Quadratic Programming Optimizes Portfolio Allocation – Quadratic programming helps determine the optimal asset mix to maximize returns for a given […]

Hidden variables in finance refer to elements that aren’t directly observable or quantifiable but significantly influence financial markets and investment outcomes. These variables often exist beneath the surface of standard financial analyses, impacting asset performance, market movements, and risk assessments.   Key Takeaways – Hidden Variables in Finance Hidden variables in finance, like central bank […]

The role of the President of the United States, as outlined in the US Constitution and shaped by historical practice, involves a wide range of duties and powers – with varying degrees of direct control over the economy. We’ll cover this in some amount of depth in this article, as well as some of the […]

Pepperstone has begun 2024 by expanding its roster of European equities, adding big names like LVMH, Nestle and AB InBev. Key Takeaways Over 70 new stock CFDs are available to trade from French, Belgian and Swiss markets. There is no spread markup on share CFDs, while commissions are competitive at 0.1%. The new stocks can […]

Bayesian Efficiency, based in Bayesian probability theory, is used in financial modeling and decision-making. It involves updating the probability of a hypothesis as more evidence or information becomes available. In finance, this concept is applied to continuously refine trading strategies and risk assessments based on incoming data.   Key Takeaways – Bayesian Efficiency Bayesian Efficiency […]

Sector rotation is a strategy used in financial markets, where traders/investors allocate their investments across various economic sectors at different times, aligning with the business cycle. This approach is predicated on the observation that different sectors of the economy perform differently during various phases of the business cycle.   The Business Cycle and Sector Performance […]

The Fisher Separation Theorem, formulated by Irving Fisher, is a fundamental principle in economics and finance. It delineates the relationship between investment decisions and consumption preferences, irrespective of market conditions and personal bias.   Key Takeaways – Fisher Separation Theorem Separates investment decisions from consumption preferences. Asserts that investment choices are driven by profit maximization. […]

With all the ups and downs of markets, the key consideration behind any asset comes down to whether it makes money and whether it represents a yield commensurate with what you need and what risks you’re taking on in order to achieve it. In this article, we’ll look at various types of cash flowing assets […]