Forex Books - page 8

New comment
 

"High Frequency Trading – Measurement, Detection and Response" and "High Frequency Trading – The Good, The Bad, and The Regulation" books posted at this post : https://www.mql5.com/en/forum/179446/page769 Worth reading for whoever is interested ib high frequency trading

 

Pictures of Learning

"Pictures of Learning" by Kent Osband

Time to calculate the weight of the evidence and apply the concept to solve particularly tricky market mysteries
Files:
pictures_of_learning.pdf  169 kb
 

Trade With The Flag -book-

Trade With The Flag

One of the best ways to trade for the Patterns traders.

The flag is one of the most reliable patterns on the

technical world. In this e-book, I will show you how to trade it the best way.

 

In the Lap of the Gods

"In the Lap of the Gods" by Henriette Prast

The 17 th - century mathematician and theologian Blaise Pascal became fascinated by gambling as a phenomenon after being approached for help by a gambling addict who had got himself into financial difficulties. Tradition has it that this meeting caused Mr Pascal to retreat to a monastery, where, ironically, he invented the roulette wheel. Pascal philosophising about gambling also produced a rational explanation for the Christian faith. If God exists, the religious have gambled well and won themselves a place in heaven; if there is no God, nothing is lost. Pagans, on the other hand, will end up in Hell, if God turns out to exist after all. According to Pascal, this makes opting for the faith a rational bet.
 

Forecasting

Forecasting with NN ...

artificial_neural_network_model_for_forecasting_foreign_exchange_rate.pdf

Nice reading.

Have a good WE

Tomcat98

 

Humans vs. Robots: Man Fights Back

"Humans vs. Robots: Man Fights Back" by Alex Preda

The ‘rise of the machine’ is a phenomenon frequently hyped up in the financial media. It stirs up luddite-esque emotion from many investors and brings about a fear of the unknown. There is however hope for humans. Professor Alex Preda talks to HFT Review about the revival of Man in the battle against the bots. This interview covers Alex’s ground-breaking research into the modern day retail investor. It will necessarily evoke opinion, so please feel free to contribute yours to the discussion box at the foot of this page
Files:
alex_preda-hftr-final.pdf  135 kb
 

The future of computer trading in financial markets

This Report is intended for: Policy makers, legislators, regulators and a wide range of professionals and researchers whose interest relate to computer trading within financial markets. This Report focuses on computer trading from an international perspective, and is not limited to one particular market.
A key message: despite commonly held negative perceptions, the available evidence indicates that high frequency trading (HFT) and algorithmic trading (AT) may have several beneficial effects on markets. However, HFT/AT may cause instabilities in financial markets in specific circumstances. This Project has shown that carefully chosen regulatory measures can help to address concerns in the shorter term. However, further work is needed to inform policies in the longer term, particularly in view of likely uncertainties and lack of data. This will be vital to support evidence-based regulation in this controversial and rapidly evolving field.

The future of computer trading in financial markets.pdf

 

Robocops: Regulating HFT After the Flash Crash of 2010

"Robocops: Regulating HFT After the Flash Crash of 2010" written by ANDREW J. KELLER

In February 2011, the television game show Jeopardy! aired a three-day contest between Ken Jennings and Brad Rutter, two of the show’s all-time grand champions, and Watson, an IBM supercomputer that understands questions posed in natural language. At the end of the three-day competition, Watson handily defeated the two grand champs with a final tally of $77,147 to Jennings’ $24,000 and Rutter’s $21,600.

The IBM researchers who designed and built Watson admitted that the machine benefitted from what they called the “buzzer factor.”3 Though Jennings and Rutter were skilled in anticipating the light indicator that signals when it is possible to “buzz in” to give a response, Watson could hit the buzzer in as little as ten milliseconds. Thus, Watson’s advantage was not that it was smarter than Jennings or Rutter, but that it could process the clues and buzz in faster than either of the human contestants.

Jennings, famous for setting a Jeopardy! record of seventy-four consecutive wins, jocularly acknowledged in his final written response of the contest, “I, for one, welcome our new computer overlords.” The response may have been lighthearted and funny, but it was also perceptive and farsighted. Jennings himself stated, “It’s not about the results; this is about being part of the future.” Shortly after the episodes aired, bloggers posed questions regarding implications of Watson’s potential uses.
Even before IBM used complex algorithms to create Watson, Wall Street has used algorithmic supercomputers for trading on financial markets.This trading method, better known as “algorithmic trading,” and more specifically its subset “high frequency trading” (HFT), accounts for 60–70% of daily trades on today’s U.S. financial exchanges, where as recently as 2005 it accounted for just a fifth of daily trading. As of this writing, HFT has not been officially defined by U.S. regulators. However, certain features are indicative of its strategies: very high order amounts; rapid order cancellation; a flat position at the end of the trading day; extracting very low margins per trade; and trading at ultra-fast speeds.
 

Effective Trade Execution

"Effective Trade Execution" by Riccardo Cesari, Massimiliano Marzo and Paolo Zagaglia

This paper examines the role of algorithmic trading in modern financial markets. Additionally, order types, characteristics, and special features of algorithmic trading are described under the lens provided by the large development of high frequency trading technology. Special order types are examined together with an intuitive description of the implied dynamics of the order book conditional to special orders (iceberg and hidden). The chapter provides an analysis of the transaction costs associated with trading activity and examines the most common trading strategy employed in the market. It also examines optimal execution strategy with the description of the Efficient Trading Frontier. These concepts represent the tools needed to understand the most recent innovations in financial markets and the most recent advances in microstructures research.
 

Analyst Forecast Consistency

Analyst Forecast Consistency article from "The Journal of Finance" by GILLES HILARY and CHARLES HSU

We show empirically that analysts who display more consistent forecast errors have greater ability to affect prices, and that this effect is larger than that of stated accuracy. These results lead to three implications. First, consistent analysts are less likely to be demoted and are more likely to be nominated All Star analysts. Second, analysts strategically deliver downward-biased forecasts to increase their consistency (if at the expense of stated accuracy). Finally, the benefits of consistency and of “lowballing” (accuracy) are increasing (decreasing) in institutional investors’ presence.
123456789101112131415...128
New comment
Reason: