Algorithmic Trading Strategies

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Questions and Answers

Which term best describes the strategic identification and pursuit of opportunities to achieve organizational objectives?

  • Prioritization (correct)
  • Policy implementation
  • Strategic planning
  • Resource allocation

Prioritization, in a business context, primarily involves dealing with unforeseen crises rather than planning for opportunity pursuit.

False (B)

What is the fundamental goal of prioritization in organizational management?

Achieving organizational objectives

Organizations use prioritization to ensure that they focus on opportunities that __________ with their overall objectives.

<p>align</p> Signup and view all the answers

Match the following terms with their correct descriptions regarding value creation and economic systems:

<p>Value Creation = The process of developing a good or service that customers are willing to pay for. Economic System = A framework that determines how resources are distributed and used in a society.</p> Signup and view all the answers

In the context of economic systems, what is primarily concerned with the distribution and utilization of resources?

<p>Economic system (A)</p> Signup and view all the answers

An economic system’s effectiveness is solely determined by the volume of resources it manages, irrespective of how efficiently these resources are utilized.

<p>False (B)</p> Signup and view all the answers

What is the central activity in value creation within a business?

<p>Offering goods or services that customers are willing to pay for</p> Signup and view all the answers

The effectiveness of an economic system hinges on its ability to __________ resources efficiently.

<p>distribute</p> Signup and view all the answers

What critical element defines turning toward in interpersonal relationships, as opposed to turning away?

<p>Acknowledging and engaging with emotional bids. (D)</p> Signup and view all the answers

In interpersonal relationships, 'turning away' is generally beneficial as it encourages independence and reduces dependency.

<p>False (B)</p> Signup and view all the answers

What is the initial step one must take to 'turn toward' someone in a relationship?

<p>Recognizing the person’s bid for interaction</p> Signup and view all the answers

The act of 'turning ________' in a relationship involves ignoring or dismissing a person's attempts to engage.

<p>away</p> Signup and view all the answers

Match each type of relational response with its potential impact on relationships:

<p>Turning Toward = Strengthens relationship bonds through positive engagement. Turning Away = Weakens relationship bonds by ignoring attempts at connection.</p> Signup and view all the answers

Which of the following statements best describes a bid in the context of interpersonal relationships?

<p>An attempt to engage someone’s attention or affection. (D)</p> Signup and view all the answers

Bids in relationships are always verbal; non-verbal cues do not qualify as bids.

<p>False (B)</p> Signup and view all the answers

Give an example of a non-verbal bid in a relationship.

<p>A smile, a touch on the arm, or an invitation to sit together</p> Signup and view all the answers

A 'bid' in a relationship is essentially an offer or attempt to connect on an __________ or emotional level.

<p>intellectual</p> Signup and view all the answers

Why is recognizing bids important in maintaining a healthy relationship?

<p>Because it strengthens the emotional connection between individuals. (D)</p> Signup and view all the answers

Neglecting bids consistently can enhance a relationship by fostering independence.

<p>False (B)</p> Signup and view all the answers

Flashcards

What is a sidereal day?

The time it takes for the Earth to make one complete rotation on its axis.

What is a solar day?

24 hours, the time it takes for a specific site on Earth to rotate back to the same position relative to the Sun.

What is nutation?

A turning toward.

Study Notes

Algorithmic Trading

  • Involves using computers for trading decisions.
  • Also referred to as algo-trading or black-box trading.
  • Computers execute, generate, and manage orders.

Benefits

  • Can reduce transaction costs.
  • Improve market efficiency.
  • Implement complex trading strategies.

Use Cases

  • Index fund rebalancing.
  • Trading between exchanges.
  • Exploiting short-term mispricings.

Automating Execution

  • Involves automating order entry and execution.
  • Reduces transaction costs, ensures optimal order size, routes to best market, and trades at optimal times.

Implementation shortfall

  • The difference between the decision and execution price.
  • Algo-trading reduces implementation shortfall.
  • VWAP, TWAP algorithms are examples of this.

Trading Strategy

  • Complex use of algo-trading.
  • Code trading rules are added into the algorithm.
  • Requires sophisticated programming and quantitative skills.
  • Algorithms automatically generate orders.

Common examples

  • Statistical arbitrage is used.
  • Involves Pairs trading and index arbitrage.

Trend following

  • Identifies and trades on trends.
  • Includes Moving average crossovers and breakout strategies.

Machine learning

  • Algorithms enable learning from data.
  • Identifies patterns and makes predictions.
  • Neural networks, and support vector machines are used.

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