Trading strategy


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Trading strategy

A disciplined method of buying and selling assets that involves working within a predefined set of rules for making trading decisions. Examples are the covered position, CPPI, index arbitrage and multirule system.
References in periodicals archive ?
In this paper, the stochastic dominance theory is applied to test the dominance relations among program trading strategies and select the optimal program trading strategy for investors, judge the profitability of program trading strategies and thus verify the efficiency of China's stock market indirectly.
An algorithm that solely generates trading ideas or investment allocations, but that is not equipped to automatically generate orders and order-related messages to effect such trading ideas into the marketwhether independently or via a linked router would not constitute an algorithmic trading strategy.
The presence of profitable time-series momentum trading strategy depends on the predictability of present returns from past returns.
It also offers an hour of trading consultation, particularly on the usage of preferred trading strategy as well as capable of back-testing any well-tailored trading strategies and signals.
On another issue, Lockburner noted that combined financial instruments, which are created from components of an arbitrage trading strategy, would be valued based on the overall components of the transactions rather than on individual valuations.
Index arbitrage is a trading strategy by which a trader aims to make a profit by exploiting small differences, at a given time, between prices of stocks and derivative investments on the same index or exchange or--more often--on different indices or exchanges.
2 The revised rule is intended to ensure the registration of associated persons who the possess the knowledge of, and responsibility for, both the design of an intended trading strategy and the technological implementation of the strategy.
The first release of the trading strategy section contains topics on Inter-market Analysis, Most in-demand Trading Software, Market Volatility, Trading Commodity Futures and Strategies and Best Strategies for Managed Futures.