FMZ Quant World

Blockchain ≠ Bitcoin  FMZ Many people think that blockchain and bitcoin are the same. Blockchain is the basic technology of Bitcoin. They are closely related, but they are not the same thing. In 2008, Bitcoin was launched as an unregulated digital currency created by Anonymous Satoshi Nakamoto. The blockchain is a ledger solution used to securely record the use of this new currency because there is no bank or government involved in monitoring or supervising transactions. Therefore, Bitcoin can actually be seen as the first use case of blockchain technology. Confusion between blockchain and bitcoin often occurs because both concepts are introduced at the same time. Blockchain and bitcoin transactions  FMZ Since the introduction of blockchain technology, it has been extrapolated to serve as a ledger solution for many other industries related to assets other than currency. These areas include health care and patient records, trade finance and the owner of invoices or pur...

Birth of blockchain  FMZ On October 31, 2008, the founder of BTC, Satoshi Nakamoto published the “BTC White Paper”, proposing “an electronic cash system that is completely realized through peer-to-peer technology, which enables online payment to be initiated directly by one party and paid to another one party without any financial institutions as third party, that is, the so-called decentralized payment system; he also described the technology that constitutes blockchain, such as 'hash function, distributed ledger, blockchain, asymmetric encryption, proof of workload', etc. On January 3, 2009, the founding block of BTC was dug up. On January 12, 2009, the first transfer transaction took place in the 170th block, which opened its booming era as a peer-to-peer value exchange network. With a fixed production of 21 million, the BTC system is seen as an experiment to solve inflation. In the first few years, BTC was in the stage of a technical experiment involving ...

We’ve been in a slump for a while now, and by the looks of it will remain in one for a good while longer. How long, how low, and how slow the recovery is anyone’s guess. If you’re reading these words, you’re still here, and thus it’s safe to assume you’re in this for the long haul. Even the most ardent of bitcoin believers is apt to feel despondent amidst the prolonged doom and gloom, but it’s not all bad; in fact, bear markets can bestow some considerable benefits. www.fmz.com You Discover Who You Can Trust Crypto Twitter (CT) tends to be bipolar: when things are good, they’re great, and when they’re bad, they’re awful. Right now, things have been so bad for so long that most pro traders have stopped dispensing tips and switched to full-time shitposting. Meanwhile, the less scrupulous “experts” have been quietly deleting all their previous tweets predicting the moon, sun and every other planetary position a crypto asset can conceivably reach. Bear markets are great for discov...

NO. 1 Guide（ www.fmz.com ) Everything in the world follows the law of conservation of energy. Trading strategies are no exception. The real challenge for quantitative traders is knowing that the strategy will grow old one day but never knowing which day it is. www.fmz.com NO. 2 Different views Some people think that the future market is constantly changing. A mature and stable trading strategy should suit for all future markets, whether it is a unilateral market or a volatile market. Others believe that different strategies suits different markets. Even if the trading strategy is strictly tested, once the trading strategy has passed the life cycle, it should be re-examined to see if it still has a solid profitability. NO. 3 Magic formula is no exception （ FMZ ) Before discussing this issue, let's look at an example—from the time of its inception in 1985 to 2005, Gotham Capital, led by Joel Greenblatt, created an investment miracle of making $7 million to $830 mill...

What is Tick? For example, transaction data can be imagined as a river, and Tick is the data of a section of the river. The finest granularity of domestic futures is twice per second. In other words, domestic futures send up to one Tick at 500 milliseconds. How do most domestic(means China in this article) software get Tick? Then there is often more than one transaction in 500 milliseconds, and the specific situation in it is completely a black box. Especially in the high-frequency trading strategy of commodity futures, the receiving speed of the Tick market has a decisive influence on the profitability of the strategy. Most trading frameworks on the market use a callback mode, which means that there is at most one Tick in 500 milliseconds in ideal situation. Under the real situation onBar/onTick, it is good not to miss Tick. why? Because you have to deal with the whole code logic in onBar/onTick function, which costs a lot of time. Whether you want it or not, your strategy ...

The hedging strategy is a relatively risky and stable type of strategy. Hedging is to achieve the profit by trading in the different markets at the same time, “moving” the currency to the exchange with low price and “flowing” the money to the exchange with high price.(www.fmz.com) Program logic flow Strategic interpretation This strategy can achieve hedging transactions on multiple digital currency spot platforms with simple code and basic hedging capabilities. Since this version is the basic teaching version, the space for optimization is large. For the new users and new developers who are learning strategy writing, it can provide a good example and some skills. It is very helpful to master the techniques of quantitative strategy writing. The strategy can be put in real market, but because it is the most basic version of teaching, the scalability is still very large, and students who have mastered the idea can also try to reconstruct the strategy. here is the complete cod...

NO.1 In the book "Financial Alchemy" written by Soros in 1987, an important proposition was put forward: I believe the market prices are always wrong in the sense that they present a biased view of the future. (www.fmz.com) The market validity hypothesis is only a theoretical assumption. In fact, market participants are not always rational, and at each point of time, participants cannot fully acquire and objectively interpret all information. Even if it is the same information, everyone's feedback is different. In other words, the price itself already contains the wrong expectations of market participants, so in essence the market price is always wrong. This may be the source of profit for the arbitrageurs. NO.2 (www.fmz.com) Based on the above principles, we also know that in a non-effective futures market, the market impact of delivery contracts in different periods is not always synchronized, and the pricing is not the reason of completely effective. T...