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9 Cards in this Set
- Front
- Back
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Breakout strts |
Used by active investors to take a position within a trends early states |
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Capacity risk |
Risk taht arises when managed futures trader is concentrating its trades in a market that lacks enough depth or liquitdity |
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Conditional correlation coefficient |
A correlation coefficient calculated on a subset of observations that is selected using a condition |
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Degradation |
The tendency and process through time by which a trading rule or trading system declients effectiveness |
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Pattern recognition systems |
Strats that attempt to capture non trend based but predictable abnormal market behavior in prices or vols |
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Random walk |
The theory that stock price changes have the same dist. and are independent of each other, so the past movement or trend of a stock price or market Cannot be used to predict its future movement |
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Robustness |
Refers to the reliabilty with which a model or system developemed for a particluar application or data set can be successfully exteded into otehr applications and/or data sets |
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Whipsawing |
When a trader alternatives between establishing long positions immediately before price decleints and short postions immediately before price increases resulting in a seres of losses |
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Relative value strategies |
Attempts to exploit inefficient short term price divergences between two correlated prices or rates |
