By Rekhit Pachanekar Prerequisites To get the most out of this blog, it helps to start with an overview of machine learning principles. Begin with Machine Learning Basics: Components, Application, Resources and More, which provides a solid introduction to how ML works, key components of ML workflows, and its growing role in financial markets. Since … Read more
By Mahavir Bhattacharya Welcome to the second part of this two-part blog series on the bias-variance tradeoff and its application to trading in financial markets. In the first part, we attempted to develop an intuition for bias-variance decomposition. In this part, we’ll extend what we learned and develop a trading strategy. Prerequisites A reader with … Read more
By Ishan Shah Initially, AI research focused on simulating human thinking, only faster. Today, we’ve reached a point where AI “thinking” amazes even human experts. As a perfect example, DeepMind’s AlphaZero revolutionised chess strategy by demonstrating that winning doesn’t require preserving pieces—it’s about achieving checkmate, even at the cost of short-term losses. This concept of … Read more
By Manusha Rao You may have noticed that markets sometimes remain calm for weeks and then swing wildly for a few days. That’s volatility in action. It measures how much prices move—and it’s a big deal in trading and investing because it reflects risk. But here’s the catch: estimating volatility isn’t straightforward. A 2% drop … Read more
By Rekhit Pachanekar and Chainika Thakar You might think, “What good are moving averages in the world of AI and LLMs?” Well, moving averages serve as a foundation for many technical indicators and they can be used as features in ML models too. The moving average helps traders identify trends that increase the number of … Read more
By: Aacashi Nawyndder, Vivek Krishnamoorthy and Udisha Alok Ever feel like financial markets are just unpredictable noise? What if you could find hidden patterns? That’s where a cool tool called regression comes in! Think of it like a detective for data, helping us spot relationships between different things. The simplest starting point is linear regression … Read more
By Chainika Thakar Independent event is an important part of mathematics, econometrics and also finance. The events that do not affect each others’ outcomes are the independent events. Particularly speaking about the financial markets’ trading domain, independent events play a significant role. When trading in one of the tradeable items (say, stocks, commodities etc.) of … Read more
Meet Elías: A Learner with a Purpose Elías Andrés Gaete Fuenzalida, hailing from Chile, with years of experience in finance and teaching at the university level, he had built a solid career. Yet something was missing. “I’ve always loved investment topics. Even in my first job, I was managing small accounts and I knew this … Read more
By Rishabh Mittal The size of the capital invested in a portfolio, strategy or trade as a percentage of your overall capital is termed as the size of that position. Position Sizing, therefore, is the methodology used to determine that size. In this blog, we will be focusing on the position size of a particular … Read more
This post is intended to be the first of a multi-part series on Bayesian statistics and methods in quantitative finance. My write up here is a short introductory post that went rogue. Motivation I must confess that when I first encountered the Bayesian approach to inferential statistics in my formal education, it was tough going. … Read more