Xiaotong DingHow do you explain the pair trading profit?Pair trading is a simple trading idea famous 15 years ago. The 2 step methodology is simple. First, you find one pair of stocks moving…Dec 25, 2020Dec 25, 2020
Xiaotong DingBehind-Running, a legal and profitable strategyFront-running is trading stock by a broker who has inside knowledge a future client transaction is about to affect its price. It is called…Dec 13, 2020Dec 13, 2020
Xiaotong DingHow to Explain Implied Volatility Surface Skew through Option Market Supply and Demand?Why is there an implied volatility skew? This question is asked in almost all interviews for option traders and quants.Nov 15, 2020Nov 15, 2020
Xiaotong DingWhy Random Forest is better than Regression model to catch weak alpha signals?One factor might be useful only under some specific conditions and becomes random noise under other circumstances. The high alpha happens…Jul 23, 2020Jul 23, 2020
Xiaotong DingThree ways to reduce implied volatility surface data dimensionVolatility surfaces data is usually in a sparse, high dimensional space with limited data points…Jul 18, 2020Jul 18, 2020
Xiaotong DingThree Typical Use Cases of the Implied Volatility SurfaceImplied volatility surface describes implied volatility as a function of option strike price and option mature time. They are calibrated…Jul 2, 2020Jul 2, 2020
Xiaotong DingWhy should not you choose parameters by grid-search in backtest?Imagine you are going to choose parameters for your trading strategy and you use grid search with backtest to find the best parameter…Aug 30, 20192Aug 30, 20192
