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…3 min read·Dec 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…2 min read·Dec 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.3 min read·Nov 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…2 min read·Jul 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…2 min read·Jul 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…2 min read·Jul 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…7 min read·Aug 30, 2019--2--2