In finance, a trading strategy is a fixed plan that is designed to achieve a profitable return by going long or short in markets. The main reasons that a properly researched trading strategy helps are its verifiability, quantifiability, consistency, and objectivity.
... A trading strategy can be executed by a trader (manually) or automated (by computer) ... Manual trading requires a great deal of skill and discipline ... It is tempting for the trader to deviate from the strategy, which usually reduces its performance ...
... Formally, a market is complete with respect to a trading strategy, if there exists a self-financing trading strategy, such that at any time, the returns ... that for a complete market, all cash flows for a trading strategy can be replicated using a similar synthetic trading strategy ... Because a trading strategy can be simplified into a set of simple contingent claims (strategies paying 1 in one state and 0 in every other state), a complete market can be generalized as the ...
... Strategy indices are indices that track the performance of an algorithmic trading strategy. 1) Pairs trading strategy ... This strategy examines pairs of instruments that are known to be statistically correlated ...
Famous quotes containing the words strategy and/or trading:
“That is the way of youth and life in general: that we do not understand the strategy until after the campaign is over.”
—Johann Wolfgang Von Goethe (17491832)
“His farm was grounds, and not a farm at all;
His house among the local sheds and shanties
Rose like a factors at a trading station.”
—Robert Frost (18741963)