COM 104 Lecture Notes - Lecture 6: Mathematical Finance, Financial Conduct Authority, Loss Function

• School: Barry University
• Department: Communication
• Course: COM 104
• Professor: William Sidies

Document Summary

The quantitative trading can be defined as the implementation of trading strategies in a disciplined and systematic manner. By which, i mean designing trading strategies in an orderly manner according to a fixed system or plan. These trading strategies are developed through rigorous research and mathematical computations. Developing these trading strategies involve application of scientific methods in selecting the securities, choosing and filtering the data, and studying the data to trade those securities. Strategy identification: it is the research phase of finding a strategy that fits your portfolio, deciding on the trading frequency and checking whether the strategy fits into the portfolio of your other strategies. Quant traders develop trading strategies such as algorithmic trading and high- frequency trading based on quantitative analysis that rely on mathematical computations to identify optimal trading opportunities. As an analyst, your work will largely entail the following: Enhancing existing machine learning and ai models for price, volume and risk management strategies.