Inside the Black Box The Simple Truth About Quantitative Trading

ISBN-10: 1118362411
ISBN-13: 9781118362419
Edition: 2nd 2013
Authors: Rishi K. Narang
List price: $49.95 Buy it from $26.34
30 day, 100% satisfaction guarantee

If an item you ordered from TextbookRush does not meet your expectations due to an error on our part, simply fill out a return request and then return it by mail within 30 days of ordering it for a full refund of item cost.

Learn more about our returns policy

Description: Inside the Black Box explains how quantitative and algorithmic trading strategies work in non-mathematical terms supplemented by anecdotes and real-world stories. There is a large chasm in the understanding of what quants do with quants often  More...

New Starting from $26.34
what's this?
Rush Rewards U
Members Receive:
coins
coins
You have reached 400 XP and carrot coins. That is the daily max!
You could win $10,000

Get an entry for every item you buy, rent, or sell.

Study Briefs

Limited time offer: Get the first one free! (?)

All the information you need in one place! Each Study Brief is a summary of one specific subject; facts, figures, and explanations to help you learn faster.

Add to cart
Study Briefs
Periodic Table Online content $4.95 $1.99
Add to cart
Study Briefs
Writing a Scientific Report Online content $4.95 $1.99

Customers also bought

Loading
Loading
Loading
Loading
Loading
Loading
Loading
Loading
Loading
Loading

Book details

List price: $49.95
Edition: 2nd
Copyright year: 2013
Publisher: John Wiley & Sons, Incorporated
Publication date: 3/25/2013
Binding: Hardcover
Pages: 336
Size: 6.50" wide x 9.25" long x 1.25" tall
Weight: 1.034
Language: English

Inside the Black Box explains how quantitative and algorithmic trading strategies work in non-mathematical terms supplemented by anecdotes and real-world stories. There is a large chasm in the understanding of what quants do with quants often perpetuating the darkness by cloaking even trivial facts about their strategies and operations in secrecy. Most of their strategies are understandable and with that understanding investment professionals can better assess a particular fund's value. The book also explains how quant strategies fit into a portfolio, why they are valuable, and how to evaluate a quant manager. How do quants capture alpha? What is the real level of discretion in quant trading? What is the difference between theory-driven systems vs. data-mining strategies? What are the typical structures of quant systems? How do quants model risk? How do you know if it works? What are execution algorithms?

Preface to the Second Edition
Acknowledgments
The Quant Universe
Why Does Quant Trading Matter?
The Benefit of Deep Thought
The Measurement and Mismeasurement of Risk
Disciplined Implementation
Summary
Notes
An Introduction to Quantitative Trading
What Is a Quant?
What Is the Typical Structure of a Quantitative Trading System?
Summary
Notes
Inside the Black Box
Alpha Models: How Quants Make Money
Types of Alpha Models: Theory-Driven and Data-Driven
Theory-Driven Alpha Models
Data-Driven Alpha Models
Implementing the Strategies
Blending Alpha Models
Summary
Notes
Risk Models
Limiting the Amount of Risk
Limiting the Types of Risk
Summary
Notes
Transaction Cost Models
Defining Transaction Costs
Types of Transaction Cost Models
Summary
Note
Portfolio Construction Models
Rule-Based Portfolio Construction Models
Portfolio Optimizers
Output of Portfolio Construction Models
How Quants Choose a Portfolio Construction Model
Summary
Notes
Execution
Order Execution Algorithms
Trading Infrastructure
Summary
Notes
Data
The Importance of Data
Types of Data
Sources of Data
Cleaning Data
Storing Data
Summary
Notes
Research
Blueprint for Research: The Scientific Method
Idea Generation
Testing
Summary
Note
A Practical Guide fop Investors in Quantitative Strategies
Risks Inherent to Quant Strategies
Model Risk
Regime Change Risk
Exogenous Shock Risk
Contagion, or Common Investor, Risk
How Quants Monitor Risk
Summary
Notes
Criticisms of Quant Trading
Trading Is an Art, Not a Science
Quants Cause More Market Volatility by Underestimating Risk
Quants Cannot Handle Unusual Events or Rapid Changes in Market Conditions
Quants Are All the Same
Only a Few Large Quants Can Thrive in the Long Run
Quants Are Guilty of Data Mining
Summary
Notes
Evaluating Quants and Quant Strategies
Gathering Information
Evaluating a Quantitative Trading Strategy
Evaluating the Acumen of Quantitative Traders
The Edge
Evaluating Integrity
How Quants Fit into a Portfolio
Summary
Note
High-Speed and High-Frequency Trading
An Introduction to High-Speed and High-Frequency Trading*
Notes
High-Speed Trading
Why Speed Matters
Sources of Latency
Summary
Notes
High-Frequency Trading
Contractual Market Making
Noncontractual Market Making
Arbitrage
Fast Alpha
HFT Risk Management and Portfolio Construction
Summary
Note
Controversy Regarding High-Frequency Trading
Does HFT Create Unfair Competition?
Does HFT Lead to Front-Running or Market Manipulation?
Does HFT Lead to Greater Volatility or Structural Instability?
Does HFT Lack Social Value?
Regulatory Considerations
Summary
Notes
Looking to the Future of Quant Trading
About the Author
Index

×
Free shipping on orders over $35*

*A minimum purchase of $35 is required. Shipping is provided via FedEx SmartPost® and FedEx Express Saver®. Average delivery time is 1 – 5 business days, but is not guaranteed in that timeframe. Also allow 1 - 2 days for processing. Free shipping is eligible only in the continental United States and excludes Hawaii, Alaska and Puerto Rico. FedEx service marks used by permission."Marketplace" orders are not eligible for free or discounted shipping.

Learn more about the TextbookRush Marketplace.

×