Author: Harbourfront Technologies

Machine Learning: Is More Data Always Better?

Data science and machine learning are advancing at a rapid pace. They’re now being applied in areas as diverse as healthcare, retail, marketing, and finance. However, a key question that still needs to be answered is: how much data do you need to train these models? The answer, it turns …

How Retail Investors Trade Options

Options trading is often thought of as a professional’s domain. However, with the advent of online trading platforms, retail traders now have access to the same tools and information as professional traders. This has changed the dynamics of the options market, as retail traders can now trade options on a …

Is Machine Learning Useful in Trading?

Machine learning and artificial intelligence is a new technology that has the potential to change the finance and trading industries. It can make the decision-making process faster and more accurate, which can lead to better results for traders and investors. There is, however, an interesting discussion about why there are …

Is Gold Still a Good Diversifier?

It’s commonly believed that Gold is a good diversifying asset, and for many years, this was true. Gold is often seen as a safe-haven asset, which means that investors turn to it when they are worried about the stock market. However, Gold has not always been a good investment. In …

Artificial Intelligence for Delta Hedging

Financial risk management is the process of identifying, measuring, and managing financial risks. There are many different types of financial risks, including interest rate risk, credit risk, liquidity risk, market risk, and operational risk. Machine learning and artificial intelligence can be used to identify and measure these risks, as well …

Feedback Effect in the Foreign Exchange Market

The Black–Scholes-Merton model is the most frequently used option pricing model in the financial industry. However, it made use of assumptions that are not always realistic. A crucial assumption of the Black-Scholes-Merton model is a frictionless and elastic market. In other words, it assumes that there are no barriers to …

Is Correlation Modeled Correctly?

Volatility is a concept that is relatively well understood and used widely in the financial market. Correlation, on the other hand, is less understood. Nevertheless, it is used frequently in trading and portfolio management. Correlation between 2 assets is a measure that shows the strength of the relationship between them. …

Do Retail Traders Have an Edge?

In order to win in trading, one should have an edge, i.e. have a slight advantage over others. This means having information or strategies that the majority of other traders don’t have. There are a few different ways to get an edge in the trading world. One is by having …