Pairs Trading Strategy
The pairs trading strategy is a high-frequency trading approach that seeks to profit from the price spread changes between two correlated assets by simultaneously buying one and short-selling the other. The core idea behind this strategy is mean reversion—when the price spread between two related assets deviates from its historical average, there is a tendency…
A Guide to Backtesting
Backtesting, short for retrospective testing, is the process of evaluating how a trading strategy would have performed in the past. It’s a critical step to determine whether your trading system is viable. Backtesting can be done manually or through automated systems. Regardless of the method, the purpose is to assess whether a strategy is worth…
Ultra-Short-Term Trading Strategies
Ultra-short-term trading (also known as intraday trading, from the English term Day Trading) refers to buying and selling stocks within the same trading day in order to profit from short-term price fluctuations. Today, let’s explore some classic ultra-short-term trading strategies. Overview of Trend Trading Strategies Trend trading strategies involve trading based on the overall direction…
10 Must-Read Trading Books for Success
In today’s financial markets—brimming with both challenges and opportunities—traders face complex decisions and fierce competition. To stand out and succeed in this dynamic environment, it takes more than just technical skills and market knowledge. True success also requires deep insight, discipline, and psychological resilience. Trading books serve as essential resources on this journey. Authored by…
Top Books on Algo-Trading
In today’s highly competitive financial markets, high-frequency trading (HFT) and algorithmic trading have become essential tools for many investors and traders seeking profit. Whether you’re a beginner or a seasoned professional, mastering these complex trading techniques is crucial. However, to truly understand and apply HFT and algorithmic trading strategies, in-depth reading of related literature is…
Practical Guide to MACD
The MACD (Moving Average Convergence Divergence) is a widely used tool in technical analysis, primarily employed to gauge the trend and momentum of stock or other asset prices. First introduced by Gerald Appel in the 1970s, MACD has become a key indicator for investors and traders due to its simplicity and effectiveness. It uses EMAs…
Algo-Trading Strategies in Cryptocurrency
When it comes to cryptocurrency trading, quantitative strategies are a widely discussed topic. By automating and systematizing the trading process, quantitative strategies help traders execute trades more efficiently and respond quickly to market fluctuations. In this article, we’ll explore high-frequency trading (HFT) strategies in the context of cryptocurrencies. HFT aims to profit through rapid trade…
Python Algo-Trading Strategies
With the rise of algorithmic trading, Python has become an essential tool for quantitative developers. This is largely thanks to Python’s powerful ecosystem in scientific computing and data analysis, along with support from excellent third-party libraries. Libraries like Pandas, NumPy, and SciPy offer rich functionalities for data manipulation, numerical computations, and scientific analysis, allowing developers…
High-Frequency Data and Arbitrage
In the stock market, arbitrage is the process by which investors seek out and exploit price differences to earn risk-free profits. With the development of high-frequency trading technologies in recent years, the search for arbitrage opportunities has become faster and more efficient. Today, we’ll go over some basic concepts of arbitrage and how high-frequency (tick)…
Different Types of High-Frequency Data
In financial markets, high-frequency data analysis has become a crucial research method, especially when it comes to making trading decisions and analyzing microstructure. We’ve already explained the concept of tick data in detail in a previous article, and understanding the different types of tick data is equally important for conducting high-precision market analysis. So today,…
