Trader & Trader Related Posts and News

A trader is anyone who buys and sells in the financial markets for the purpose of achieving short-term gains (alpha.)  Traders today utilize execution management systems to watch the prices in the market and to execute their orders.

The following are posts and links that are interesting to traders and those who want to move from trading into algorithmic trading and who are seeking capital for trading.

Posts

Algo Trading powered by Alternative Data Sets

Conversations: Effects of Alternative Data Sets on Trading Algorithms

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What effect can alternative data sets have on trading algorithms?

We asked a few of our teammates and systematic traders what the effect of alternative data sets is on trading algos. We thought we could spread some insight as to why our alternative data is so valuable the also developers. We all start using the smallest and most basic data sets, such as the generic S&P500 stock prices. This is all just fine until you want to take your development to the next level. You can delve deeper into predicting the rise and fall of each stock using these specified alternative data sets. CloudQuant offers a wide and expanding variety of these data sets for free, giving our users easy access to alternative data in order to help them improve their trading strategies.
The teammates featured are:
  • Tayloe Draughon- Sr. Product Manager
  • James Chang- Quantitative Portfolio Manager
  • Morgan Slade- CEO
  • Steve Pettinato- Portfolio Manager
  • Paul Tunney- Client Success Manager
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Quantitative Trading & Algos in the news. 24, May 2018

News clips provided algorithmically.
 

Alogo Allocation CloudQuant allocates risk capital to crowd-resourced trading algorithm

CloudQuant has allocated risk capital to a crowd resourced trading strategy, according to the company in a press release. CloudQuant is the cloud-based trading strategy incubator. Quantitative analysts, algorithmic developers, data scientists and traders around the world create and test trading strategies leveraging CloudQuant’s superior infrastructure. The strategy’s creator, an Australian based crowd researcher, leveraged CloudQuant’s market s… 2018-05-22 00:00:00 Read the full story.

Quants With 20% of U.S. Stock Funds Puzzle Over Timing of Cycle

Wall Street quants are taking sides on the trajectory of the U.S. business cycle — and money is riding on their investing styles like never before. The high-stakes call — risking some of the stock market’s hottest trades — is reigniting one of the most contested debates in the quantitative community: Can investors time the market? And even if so, should they? It’s all down to conflicting economic signals in factor investing, which slice and … 2018-05-22 00:00:00 Read the full story.

Equity Market Innovation Leads to Venue Proliferation

By Ivy Schmerken, Editorial Director, FlexTrade Several startups are planning to launch either new venues or order types, and even listing standards, to solve problems in US equity trading. At last month’s SIFMA Equity Market Structure conference, executives with the following three startups and one established exchange discussed their particular market innovations and how each one fits into the existing equity market structure. Imperative Exe… 2018-05-24 08:53:24-04:00 Read the full story.

Exclusive Interview: Ninjatrader Platform Expert Chris Dolan

Grace: I wanted to introduce you to the QuantNews audience so that people can learn more about your unique product. Your website mentions that your company has been offering access to advanced charting, trade simulation and real time historical Forex market data. Can you give us more of an overview of your company? Chris: At its core, NinjaTrader is a trading platform that offers a complete front-end technology solution for charting, analytics, … 2018-05-24 06:52:37+00:00 Read the full story.

QB Offers Futures and Fixed Income Algos

Quantitative Brokers is keeping the algorithmic wheels turning as it has partnered with Rebar Systems to provide fixed-income and futures algos. In this partnership, Rebar clients will have access to QB’s multiple algorithms via the former’s Rebar Order Management and execution platform. ROME, formally launched in April 2018, has integrated QB’s fixed-income and futures algorithms – Bolt, Strobe, and Closer – to offer hedge funds and asset manag… 2018-05-22 14:04:59-04:00 Read the full story.  

Discount Retailer Ross Stores Is in Recovery Mode

Discount retailer Ross Stores, Inc. (ROST) reports quarterly earnings after the closing bell on Thursday, May 24. The stock is trading between my semiannual pivot of $78.79 and my annual risky level of $85.13, which was tested at the Jan. 29 high. Ross shares closed Wednesday at $82.61, up 2.9% year to date and down 3.6% from the Jan. 29 high of $85.66. The stock is in recovery mode at 12% above its March 7 low of $73.76. Analysts expect Ross St… 2018-05-24 01:00:00-06:00 Read the full story.

3 Charts That Suggest the Uptrend in Financials Should Continue

The financial sector suffered a dip earlier this year along with most of the market when volatility and uncertainty seemed to dominate headlines. Over the past few years, the financial sector has proven to be one of the most resilient sectors to pullbacks, and recent price action is suggesting that the trend is about to resume its upward trajectory. In this article, we take a look at several key charts that are used by traders to track the perfor… 2018-05-23 08:18:00-06:00 Read the full story.

IG Group appoints long standing senior executives Bridget Messer and Jon Noble as Executive Directors

Demonstrating IG Group’s unfaltering ability to retain and empower top industry talent, IG Group elevates two very senior and longstanding leaders to Executive Director status Evergreen retail FX and CFD giant IG Group has appointed two long standing senior executives to its board, who will report directly to CEO Peter Hetherington. Today, the company’s Chief Commercial Officer Bridget Messer has been elevated to Executive Directorship status, … 2018-05-23 10:02:09+03:00 Read the full story.   stock exchange evolution panel

Tech Firms Vie to Become the “Amazon” of Fixed Income

For independent advisors, getting an accurate sense of the fixed income marketplace can be a challenge, let alone coming up with enough data to make confident trading decisions. But with a rising interest rate environment and large numbers of clients reaching retirement age, expectations are high for advisors’ fixed income strategies. Tech companies with powerful computing capacities and varied strategies are attempting to bridge the gap, bringin… 2018-05-23 06:00:09-04:00 Read the full story.

Has Wall Street Completely Lost Its Mind on General Electric?

Wall Street equity research is supposed to be a value-add to clients. But, one has to wonder what value analysts are providing to their trading desks on struggling General Electric (GE) . In fact, one has to wonder how many clients have been hurt by wrong calls on what has amounted to an industrial stock value trap. Out of the 21 sell-side analysts that cover GE 53% rate the stock a hold, according to Bloomberg data. That’s 53% of a well-paid group of I-bank number crunchers that have been unable to make a clear decision on a stock that has … 2018-05-24 08:32:13-04:00 Read the full story.

Trading-Technology Q&A: John Adam, FactSet (Part 2/2)

Markets Media recently spoke with John Adam, Senior Director, Portfolio Management & Trading Solutions at FactSet. The first segment of the Q&A focused on the big picture; what follows is about the past, present and future of FactSet Trading Solutions. FactSet bought Portware in 2015. How has this acquisition enhanced what FactSet can do for clients and how does the franchise continue to move forward? As good as Portware was before the acquisit… 2018-05-22 13:11:15-04:00 Read the full story.

There’s a Shortage of Expert ETF Traders Who Make the Market Tick

A shortage of specialized traders who oversee ETF transactions on stock exchanges is threatening the boom in exchange-traded funds. Issuers complain that it’s becoming increasingly difficult to hire lead market makers, or LMMs, who work to minimize the difference between the prices that buyers are willing to pay and sellers will accept. What’s the problem? With almost 2,000 funds in the U.S., the resources of these traders are wearing thin. Gol… 2018-05-23 00:00:00 Read the full story.

Virtus InfraCap U.S. Preferred Stock ETF Launches on NYSE: Portfolio Products

Virtus ETF Solutions partnered with Infrastructure Capital Advisors, LLC to introduce the Virtus InfraCap U.S. Preferred Stock ETF, which begins trading today under the ticker “PFFA” on NYSE Arca. The fund seeks current income and capital appreciation in a sector that may be less understood by investors, according to Jay Hatfield, founder and chief executive officer of InfraCap and co-portfolio manager. It will invest in a portfolio of more tha… 2018-05-21 00:00:00 Read the full story.

Goldman Sachs loses senior sales trader to Credit Suisse

Credit Suisse has hired a senior sales trader from Goldman Sachs to bolster the bank’s European client coverage for global portfolio execution. Jack Tierney joins Credit Suisse’s portfolio trading sales team in Europe, as the investment bank continues to build its program risk trading business. He will focus initially on the Benelux region, although his scope will soon extend beyond this. A spokesperson at Credit Suisse declined to comment on t… 2018-05-21 13:38:30+01:00 Read the full story.    
This news clip post is produced algorithmically based upon CloudQuant’s list of sites and focus items we find interesting. If you would like to add your blog or website to our search crawler, please email customer_success@cloudquant.com. We welcome all contributors. This news clip and any CloudQuant comment is for information and illustrative purposes only. It is not, and should not be regarded as “investment advice” or as a “recommendation” regarding a course of action. This information is provided with the understanding that CloudQuant is not acting in a fiduciary or advisory capacity under any contract with you, or any applicable law or regulation. You are responsible to make your own independent decision with respect to any course of action based on the content of this post.

Market Turmoil Generates Opportunity for Proprietary Traders

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In these times of market turmoil and volatility, the Kershner Trading Group stands ready to provide traders with a firm built on a strong foundation of significant capital investment, innovation-focused trading technology and decades of experience in the active and proprietary trading space. Kershner Trading is actively seeking experienced US Equities Traders
Trading Strategy Scorecard from CloudQuant

52 Traders Interviews Morgan Slade

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The podcast on Massive 30,000 Trades Daily, High-Frequency Quant Trading with Morgan Slade including an interesting breakout trading strategy.
News for Machine Learning and Algo Trading

Deep Dive With JLN: How Can The Financial Industry Draw In The Next Generation Of Talent?

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The former trading floors provided a sense of community. Electronic trading communities like CloudQuant provide a bright future for new traders.
chicago cityscape and sears tower

Built in Chicago: Wanna try your hand at high-frequency trading? There’s an app for that

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Built in Chicago discusses CloudQuant, a Chicago-based algorithmic trading startup, lets anyone try their hand at devising their own strategies.
Trend Analysis in a Candlestick Market Data Chart

Algorithms for Trading

The hardest part of starting any project, including building a quantitative trading strategy, is figuring out where to start. To that end, this post covers a basic overview of a few algorithms for trading. We hope to help you get your creative energy to level up.
Quantitative Strategy, Trading, and Algo Development Industry News

Why You Should Always Question The Status Quo — Tradeciety

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CloudQuant was mentioned in this article by Tradeciety about trading psychology. We particularly like the comment saying “If you are so worried about algos, why don’t you look at Python? Read up on it. Cloudquant, Quantopian. The tools are there, the information is there, for free.” Change is progress, stagnation is death. That is the truest truth, especially in capitalism and thus also in trading. Grow or die. But then the real question is, why do so many people want to go backward? Everything was better before, we will make this and that great again, bla bla bla, yada yada yada. And why are so many people afraid of change when change is the only thing that ever brought humanity forward?
In Germany, we have this saying:”The farmer doesn’t eat what he doesn’t know”…that exactly describes the herd mentality. People are afraid of change because it involves an unknown factor. What will happen if we do that? What will happen if do this? I want to go back to my mommy. Where is my mommy? That is exactly what is happening in politics and in the world right now. Read the full article on Tradeciety
Innovation in Trading

The next wave of broker innovation will be Crowdsourced algos

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Are Institutional Brokers Innovative?

Markets Media is reporting that “47% of buy-side firms, mostly those with modest levels of assets under management, did not think their brokers were doing anything innovative.” Andy Kershner, the CEO of CloudQuant’s parent company was interviewed.  He believes:

The next wave of broker innovation likely will be geared toward democratizing quantitative trading, according to Kershner Trading Group Founder and CEO Andy Kershner. That would vastly expand the universe of high-level quant traders globally, which Kershner roughly estimated stands at perhaps 5,000 today.

Andy Kershner, Kershner Trading

“It will be very similar to what you saw when you had access to the market open up in the mid-90s for day traders,” Kershner said. “You had lots of innovation, lots of people coming in with lots of ideas, and lots of software that really changed and knocked out all the market makers. Then high-frequency came along and killed all the specialists and also knocked out some of the day traders. I think now we’ll see a reversion.”

“You’ve got ‘big data’ out there everywhere that everybody talks about, but the moat is access to the data, access to capital, and access to some knowledge of what to do with it,” Kershner continued. “I think in the next three years if you do not have an auto- or quantitative-trading system that’s more than just APIs — you’ll need back-testing, forward-testing, live, the whole package — if you don’t have that for people to sign up for, your brokerage will be left behind.”

Read the full story on Markets Media

Sharpe Ratio distribution

Four Problems with the Sharpe Ratio

If you are an algorithmic trader, developer, or data scientists they you have already heard of the Sharpe Ratio. Many of you use this measurement as your score card for how well your algo performs.

The Sharpe Ratio, named after William Forsyth Sharpe,  measures the excess return per unit of deviation in an investment asset or a trading strategy. There are the four potential problems in using the Sharpe Ratio to measure trading performance. The first two problems are relevant if trading results in different intervals are correlated, while the latter two problems are relevant even if trading results are uncorrelated.

Problem 1. Failure to distinguish between intermittent and consecutive losses

Problem 2. Dependency on time interval

Problem 3. Failure to distinguish between upside and downside fluctuations

Problem 4. Failure to distinguish between retracements in unrealized profits versus retracements from “Trade Entry Date” equity.

Read the four problems with more detail and graphs on Oxford Capital Strategies