By José Carlos Gonzáles Tanaka The ARFIMA model is well suited for capturing long-range memory in financial time series. However, it’s not always the case the time series exhibits long memory in their autocorrelation. The ARTFIMA model comes to the rescue to capture not only the long memory but also its short one and the … Read more
As a review, an iron condor is an out-of-the-money put spread plus an out-of-the-money call spread. Contents Here is a typical iron condor on the RUT index with the short put and short call at around 15-delta. It started out with 49 days till expiration. Put spread: Sell one contract 2175 putBuy one contract 2150 … Read more
By Rekhit Pachanekar The origin of the Relative Strength Index (RSI) indicator is quite interesting. Created in 1986 by J. Welles Wilder, who was an engineer, land developer first and then a commodities trader, the RSI indicator has come a long way since its origin. Even though J. Welles Wilder was working on commodities when … Read more
How Global Neutral Rates Impact Currency Carry Strategies? Market practitioners often rely on experience-based wisdom to navigate currency markets, and one such widely held belief is that low dispersion in global bond yields signals weak future returns for carry trades (and high dispersion implies high future carry returns). While this intuition makes sense—when yield differentials … Read more
By Terry Ashton, updated March 14, 2025 As we enter 2025, significant changes in Japan’s economic environment are altering how traders approach the yen carry trade. This strategy, which has been a cornerstone of forex trading for many years, might need some adjustments due to shifts in Japan’s economic policies. This guide will provide you … Read more
Automated trading strategies have changed the financial markets, making it easier for traders to execute trades efficiently, eliminate emotional decision-making, providing them with automatic execution of entries based on indicators and powerful risk management, and opening trades on opportunities around the clock. With custom trading bots according to specific strategies, traders can achieve higher precision, … Read more
By Terry Ashton, updated January 3, 2025 The world of cryptocurrency is no stranger to rapid change. As digital currencies continue to gain traction, the tools that power trading strategies are evolving just as fast. One of the most significant innovations in this space is the integration of Artificial Intelligence (AI) and Machine Learning (ML). … Read more
Analysts have used technical indicators for years. They analyze historical data, looking at past price movements to speculate on the future price direction of financial instruments. These indicators rely on patterns and gather price, volume, or open interest data. It’s crucial to understand that technical indicators work reactively. They don’t predict the future but measure … Read more
Mean reversion trading strategies are key for smart traders looking to grow their portfolios. They use the fact that asset prices often return to their historical average. This can lead to big wins in the stock market. This article will dive into what mean reversion is and how it works. We’ll look at its theory … Read more
Welcome to our guide on mastering Ichimoku Cloud trading strategies. This Ichimoku Cloud tutorial is for traders of all levels. It helps you use one of the most advanced technical analysis tools out there. By learning about the Ichimoku Cloud, you can make quick and smart trading choices. This tool makes market complexities easier to … Read more