Quality Money Management : Process Engineering and Best Practices for Systematic Trading and Investment

76 CHAPTER ◆ 6 STAGE 0: The Money Document ● Hardware and network architecture. ● Trading system speed and its impact on trading ...

77 Electronic markets, leased lines, and high-speed computers have made high frequency, algorithmic trading possible. Some tradi ...

STAGE ◆ I Design and Document Trading/ Investment Strategy ...

81 STAGE 1: Overview CHAPTER ◆ 7 The spiral stage structure of K|V begs two perspectives—one, that of the loops; and two, that o ...

82 CHAPTER ◆ 7 STAGE 1: Overview Steve McConnell in his text Rapid Development points out that design serves as the foundation f ...

83 ● Review these inputs to assure they are complete and not conflicting. ● Time-to-market, cost, materials, reuse of appropriat ...

84 CHAPTER ◆ 7 STAGE 1: Overview The first loop is competitor analysis, an attempt to gain as much knowledge as possi- ble about ...

85 The final loop of Stage 1 consolidates all component descriptions into a single document with all of the trading rules and a ...

87 Describe Trading/Investment Idea When people think, they make errors. Human thought processes are inherently bad. (Research s ...

88 CHAPTER ◆ 8 Describe Trading/Investment Idea ● Begets new learning. ● Facilitates self-criticism and peer review. ● Eases the ...

the quality of discussion and research.^2 For technical writing, the focus is on content (in this and all other kinds of technic ...

90 CHAPTER ◆ 8 Describe Trading/Investment Idea ● Maintaining a catalog of documentings and sources. We recommend you build a co ...

91 Screen shots and drawing with captions. Prototypes (e.g., sample spreadsheets) with embedded documentation. Logic flow diagr ...

92 CHAPTER ◆ 8 Describe Trading/Investment Idea the logic implications. Every time our trading system receives a price update fr ...

93 results agree with the written specifications. While prototypes flow from inputs to quan- titative methods to outputs, the pr ...

94 CHAPTER ◆ 8 Describe Trading/Investment Idea logic that will lead to entering into and exiting from positions in the markets. ...

95 8.6.1. Best Practices ● Document all aspects of the trading/investment system. ● Diagram logical paths using logic maps. ● De ...

97 Research Quantitative Methods Research is the driving sector of the financial markets. Those who cannot reliably do market re ...

98 CHAPTER ◆ 9 Research Quantitative Methods 9.1. Benchmarking Quantitative Methods Benchmarking is a comparative process. To be ...

99 ● Endorsed by expert judgment. For example, financial engineers, either internal or external, may widely agree that one metho ...