Welcome to NexusFi: the best trading community on the planet, with over 150,000 members Sign Up Now for Free
Genuine reviews from real traders, not fake reviews from stealth vendors
Quality education from leading professional traders
We are a friendly, helpful, and positive community
We do not tolerate rude behavior, trolling, or vendors advertising in posts
We are here to help, just let us know what you need
You'll need to register in order to view the content of the threads and start contributing to our community. It's free for basic access, or support us by becoming an Elite Member -- see if you qualify for a discount below.
-- Big Mike, Site Administrator
(If you already have an account, login at the top of the page)
I am looking for some good websites/resources on statistical arbitrage.
There are some books and white papers available out there but they are filled with complicated math formulas which are difficult to grasp for the average trader.
Can you help answer these questions from other members on NexusFi?
How's the average trader suppose to trade statistical arbitrage? Especially when they have limited domain skill when it comes to Math.
"Free markets work because they allow people to be lucky, thanks to aggressive trial and error, not by giving rewards or incentives for skill. The strategy is, then, to tinker as much as possible and try to collect as many Black Swan opportunities as you can"
hirtop
Seattle WA
Posts: 16 since Nov 2014
Thanks Given: 10
Thanks Received: 3
Indeed it is intimidating in the beginning...I've read a few books and white papers on the subject and you need to have a good understanding of statistics and calculus in order to automate it.
However, I am manually trading a neutral market strategy with decent returns...thing is that you don't care anymore about the market direction since you are hedged...
I believe that this can be done and implemented at our level (i.e. average retail trader)...
SMCJB
Houston TX
Legendary Market Wizard
Experience: Advanced
Platform: TT and Stellar
Broker: Advantage Futures
Trading: Primarily Energy but also a little Equities, Fixed Income, Metals and Crypto.
Frequency: Many times daily
Duration: Never
Posts: 5,049 since Dec 2013
Thanks Given: 4,386
Thanks Received: 10,206
What exactly do you mean by "statistical arbitrage". Stat Arb to me refers to a subset of 'Quantitative Trading' focused on equities, often pairs trading.
Wilmott is a highly respected Quant site with information, resources and forums, but generally the expected understanding/math level is typically pretty high.
Maybe slightly off-topic (but probably not as off-topic as you may think) is the free coursera.org online class on Machine Learning. It's a very highly respected course, that I and several others on this forum have done. The Math isn't that complicated, although it's a lot easier if you understand matrices, but the course does involve some basic programming in Octave which is actually very intuitive.
