Trading Bitcoin Systematically: Is It Possible?

Bitcoin is a decentralized digital currency, without a central bank or single administrator, that can be sent from user to user on the peer-to-peer bitcoin network without the need for intermediaries. Transactions are verified by network nodes through cryptography and recorded in a public distributed ledger called a blockchain. Bitcoin …

Statistical Arbitrage in the Sport Market

Statistical arbitrage is a trading strategy that exploits the differences in prices between different asset classes. It has been employed, however, not only in the financial market but also in sports betting. Sports betting is a form of gambling that involves wagering on the outcome of a sporting event. Of …

Corporate Job Postings as Alternative Data

The last decade has seen the rise in popularity of alternative data in financial analysis. This data is generally defined as any information that is not typically used in financial analysis, such as social media data, satellite imagery, and weather data. While alternative data has been used by hedge funds …

Validity of Research in Asset Management

Academic and practitioners’ literature is a source for many investment and trading ideas. However, it is often criticized for producing ideas that do not work in practice. A problem we have seen repeatedly is that the published papers, more often than not, only present in-sample results and disregard out-of-sample ones. …

Momentum in the Option Market

In the financial market, momentum is the tendency for assets to continue moving in the same direction. It is a reflection of the underlying strength or weakness of an asset’s price action and can be used to identify trends. Momentum is one of the most pervasive market phenomena and can …