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
Statistical thinking is an approach to process information through the lens of probability and statistics so as to make informed decisions. This series of blogs takes you through a journey where we begin with introducing statistical thinking, make a brief stopover to understand Bayesian statistics and then dwell on its applications in financial markets using … Read more
By Vivek Krishnamoorthy This post on Bayesian inference is the second of a multi-part series on Bayesian statistics and methods used in quantitative finance. In my previous post, I gave a leisurely introduction to Bayesian statistics and while doing so distinguished between the frequentist and the Bayesian outlook of the world. I dwelt on how each … Read more
By Varun Divakar In this blog on “Understanding the chain rule,” we will learn the math behind the application of chain rule with the help of an example. Table of Contents For those of you who are interested in Neural Networks and Deep Learning, the process of backpropagation is a very important concept which is … Read more
By José Carlos Gonzáles Tanaka Prerequisites This blog is a hands-on tutorial that walks you through the math behind the ARIMA model and how to implement it as a backtesting strategy for stock trading. You’ll not only learn how to apply ARIMA models but also how to enhance your results with advanced concepts and references. … Read more
By Akshay Chaudhary This blog focuses on helping traders identify market trends and make more confident trading decisions using five popular technical indicators: Moving Averages, ADX, MACD, RSI, and Bollinger Bands. Each is explained with examples and accompanied by Python code snippets to help you implement them in your own strategy. Before diving into this … Read more
By Mahavir Bhattacharya Prerequisites To fully grasp the bias-variance tradeoff and its role in trading, it is essential first to build a strong foundation in mathematics, machine learning, and programming. Start with the fundamental mathematical concepts necessary for algorithmic trading by reading Stock Market Math: Essential Concepts for Algorithmic Trading. This will help you develop … Read more