An electronic system used by the New York Stock Exchange to send orders between brokers and trading booths on the floor of the exchange. An order-management system designed exclusively for NYSE members, which enables member firms to quickly and efficiently process and manage their orders and selectively route orders via SuperDOT® directly to either the trading post, the … [Read more...]
Articles Of Incorporation Explained
The Articles of Incorporation (sometimes also referred to as the Certificate of Incorporation or the Corporate Charter) are the primary rules governing the management of a corporation in the United States and Canada, and are filed with a state or other regulatory agency.A set of documents filed with a government body for the purpose of legally documenting the creation of a … [Read more...]
What is a Quant Fund?
An investment fund that selects securities based on quantitative analysis. In a quant fund, the managers build computer-based models to determine whether an investment is attractive. In a pure "quant shop" the final decision to buy or sell is made by the model; however, there is a middle ground where the fund manager will use human judgment in addition to a quantitative … [Read more...]
Mechanical Stock Investing
Mechanical Investing Buying and selling stocks according to a screen based on predetermined criteria, usually with the help of technical indicators such as relative strength or momentum. This method allows traders to enter transactions without emotion and backtest their strategies by using historical data from any time period. For example, one of the most common … [Read more...]
What is Backtesting?
Backtesting The process of testing a trading strategy on prior time periods. Backtesting (or back-testing) is the process of evaluating a strategy, theory, or model by applying it to historical data. It can be used in situations like studying how a trading method would have performed in past stock markets, or how a model of climate and weather patterns would have matched … [Read more...]