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5x Leveraged Exchange Traded Fund

Posted on December 20, 2021 By 
A leveraged exchange-traded fund (ETF) is a financial instrument that offers the return of an underlying index multiplied by a given leverage factor. The fund usually uses borrowed money, futures, swaps, and other derivatives to amplify the daily price movements of the underlying index. Investing in these exchange-traded funds involves …
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Bank of Canada’s working group recommends ending CDOR in mid-2024

Posted on December 18, 2021 By 
Publication of the Canadian dollar offered rate (CDOR), Canada’s primary interest rate benchmark, should end after June 2024, the working group helping to transition Canadian financial markets to risk-free benchmark interest rates said on Thursday. The Canadian Alternative Reference Rate working group (CARR) recommends that Refinitiv Benchmark Services (UK) Limited …
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Recency Bias: How It Affects Your Trading

Posted on December 11, 2021 By 
Trading is a difficult endeavor, and the main reason most traders fail is that they don’t have an edge. The expectation value of most trading strategies is zero before commissions and slippage. Taking commissions and slippage into account, trading is a negative-sum game. Even with a positive expectancy trading system, …
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How Rising Inflation Affects Your Investments

Posted on December 8, 2021 By 
Inflation is an important indicator of an economy’s health, as it indicates how the costs of goods and services are rising. While consumers often look at the prices of individual products as a gauge of their affordability, they have a broader need for a wide range of commodities. These include …
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Cross-Sectional Momentum in the Commodity Market

Posted on December 5, 2021 By 
Momentum trading is often divided into 2 categories: time-series momentum and cross-sectional momentum. Time-series based trading strategies generate trading signals based on the asset’s past returns. A typical time-series trading strategy usually involves buying assets with positive trend signals and selling those with negative trend signals. In contrast, cross-sectional trading …
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How to Determine Credit Risks of a Startup

Posted on November 30, 2021 By 
There is a very interesting discussion on stackexchange on how to determine the credit risks of a startup. What would be the ideal way to develop the IFRS9 ECL model for startup fintech when there is no historical data. There are 2 answers to this question (as of November 2021) …
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Is It Better To Be Lucky Than Good?

Posted on November 28, 2021 By 
In the financial market, the logarithms of asset prices are often modeled as a normal distribution. Elsewhere in life, many things are normally distributed: people’s height, education levels, talents, working hours in a day, etc. Success, as measured by wealth, however, is not normally distributed. In fact, it’s heavily skewed …
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Does Intraday Momentum Exist in the Crude Oil Market

Posted on November 24, 2021 By 
Day trading is a popular discussion topic in the practitioners’ literature, the blogosphere, and social media. It receives,  however, less attention in the academic community. We have previously discussed a paper on the intraday momentum in the stock indices. Reference extended the research to the oil market. It used …
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