<ul><li>Prior -0.8%</li><li>Market index 204.2 vs 208.1 prior</li><li>Purchase index 175.5 vs 181.0 prior</li><li>Refinance index 340.8 vs 325.5 prior</li><li>30-year mortgage rate 6.41% vs 6.49% prior</li></ul>

This article was written by Justin Low at forexlive.com.

<p style=““ class=“text-align-justify“>European stocks are holding lower, with S&P 500 futures also seen down 6 points, or 0.15%, so far on the day. Meanwhile, 10-year Treasury yields are little changed and keeping close to 3.53% so that is not offering traders a whole lot to work with in the major currencies space.</p><p style=““ class=“text-align-justify“>The dollar is sitting more mixed with USD/JPY up 0.3% to 137.40 but off earlier highs of 137.85, though buyers are still in near-term control as outlined earlier <a target=“_blank“ href=“https://www.forexlive.com/news/dollar-holds-steady-to-start-the-session-20221207/“ target=“_blank“ rel=“follow“>here</a>. Elsewhere, EUR/USD is up 0.3% to 1.0500 and running into a test of its 100-hour moving average (after a bounce near its 200-hour moving average):</p><p style=““ class=“text-align-justify“>Price action is somewhat stuck in between the key near-term levels and the same is said for GBP/USD, which is seen up 0.4% to 1.2180 levels. That said, cable is caught in a tussle in trying to stay above its 200-day moving average in the bigger picture:</p><p style=““ class=“text-align-justify“>This comes after a bit of a retreat after running into its August highs at 1.2276-93 and also its 50.0 Fib retracement level from the swing lower since last year, seen at 1.2303.</p><p style=““ class=“text-align-justify“>Elsewhere, USD/CAD is up another 0.2% to 1.3680 as oil prices are pressured further as noted earlier <a target=“_blank“ href=“https://www.forexlive.com/news/oil-tumbles-to-fresh-lows-for-the-year-20221207/“ target=“_blank“ rel=“follow“>here</a>. Amid a more tepid mood in the equities space, the antipodeans are mixed with AUD/USD down 0.2% to 0.6670-80 levels while NZD/USD is up 0.2% to 0.6332 currently.</p><p style=““ class=“text-align-justify“>AUD/USD in particular is getting sucked back in towards a test of its 100-day moving average (red line) as sellers continue to keep near-term control on a hold below its 100 and 200-hour moving averages at 0.6762 and 0.6741 respectively.</p>

This article was written by Justin Low at forexlive.com.

<ul><li>GDP +2.3% vs +2.1% y/y second estimate</li></ul><p style=““ class=“text-align-justify“>There’s a slight revision higher and looking at the breakdown, household consumption expenditure contributed to 0.4% in GDP growth while contribution from government final expenditure was negligible. Meanwhile, gross fixed capital formation contributed 0.8%, contribution from external balance was negative at -1.1%, and contribution from changes in inventories was seen up 0.2%.</p>

This article was written by Justin Low at forexlive.com.

<p style=““ class=“text-align-justify“>If something can’t go up on good news, well..</p><p style=““ class=“text-align-justify“>That is very much the case for oil as even the recent news of the re-opening in China isn’t enough to lift it from the doldrums after the retreat since June this year. The double-top pattern from the October and November highs was the final straw before we see price tumble further this week, after OPEC+ decided to keep production quotas unchanged over the weekend <a target=“_blank“ href=“https://www.forexlive.com/news/opec-holds-production-unchanged-as-expected-20221204/“ target=“_blank“ rel=“follow“>here</a>.</p><p style=““ class=“text-align-justify“>The story about a Russian oil price floor yesterday <a target=“_blank“ href=“https://www.forexlive.com/news/russia-mulls-oil-price-floor-in-response-to-g7-oil-price-cap-report-20221206/“ target=“_blank“ rel=“follow“>here</a> didn’t really provide much lasting relief for oil prices and that is arguably a big tell on how market sentiment is faring at the moment.</p><p style=““ class=“text-align-justify“>It’s a tough one to square up as the technical picture is outweighing the fundamental landscape in the oil market. You would think China re-opening, which is perhaps the biggest boost for oil demand, would be enough of a boon to lift the mood for buyers.</p><p style=““ class=“text-align-justify“>But looking at the chart above, the $70 mark is the likely technical destination for oil now before potentially revisiting the late 2021 lows around $62.50 to $64.50.</p><p style=““ class=“text-align-justify“>I reckon it will have come down to OPEC+ really signaling something significant to really change up the landscape in the oil market moving forward. There is also the case that the US needs to replenish its SPR and at these prices, they are seemingly attractive enough surely. That might play into additional demand but we’ll see if there is any appetite to get that done in the weeks/months ahead.</p><p style=““ class=“text-align-justify“>For now, it looks like sellers are in control and are still flushing out long positions that have been caught hoping for a tighter market amid the shelving of Russian oil – which doesn’t seem to have materialised.</p>

This article was written by Justin Low at forexlive.com.

<p class=“MsoNormal“>In this overview, we will get to
know the concept of quantitative trading. We will look at what it is for and
its advantages and disadvantages. </p><p class=“MsoNormal“>What is
quantitative trading?</p><p class=“MsoNormal“>Quantitative trading is a set of trading strategies based on quantitative analysis,
which uses mathematical calculations and statistical calculations to identify
trading opportunities. The price of a financial instrument and its volume of
trades are among the most common parameters of mathematical models used in
quantitative analysis and trading.</p><p class=“MsoNormal“>Quantitative trading involves
trading strategies and decisions based on historical data, statistical
indicators and hypotheses about future events and their impact on financial
markets. Simply put, the essence of quantitative trading is the use of an
effective <a target=“_blank“ href=“https://blog.roboforex.com/blog/2020/06/12/7-trading-strategies-for-beginners-and-advanced-in-2021/?utm_source=forexlive.com&utm_medium=pr&utm_campaign=rf_en_external_article&utm_content=article&a=ohrb“ target=“_blank“ rel=“follow“>trading strategy</a>, created on the basis of analysis of a wide variety of
information. </p><p class=“MsoNormal“>Today, quantitative strategies are
mainly used by institutional investors and various hedge funds. Such trading is
characterised by high volumes and a large number of trading transactions.
Modern technology, professional equipment and all available data on the
financial instrument are used.</p><p class=“MsoNormal“>Fundamentals of
quantitative trading</p><p class=“MsoNormal“>The quantitative trading system has
four main components:</p><ol type=“1″ start=“1″>
<li class=“MsoNormal“>Strategy selection. All quantitative trading
processes start with an initial research period. This research process
includes finding a suitable strategy, obtaining the data needed to test
the strategy, and a preliminary assessment of its effectiveness. The
chosen strategy is then subjected to serious analysis and refinement in
order to increase the potential profitability and at the same time reduce
the risks associated with trading.</li>
<li class=“MsoNormal“>Testing the strategy on
history. Once the
strategy is defined, it is necessary to test on historical data and
possibly optimise some parameters. Although historical testing does not
fully guarantee that a strategy will be successful in real time, it is a
certain test of a strategy’s quality and viability. Standard indicators to
assess the effectiveness of quantitative strategies are maximum drawdown
and Sharpe ratio.</li>
<li class=“MsoNormal“>Execution system. The execution system is the
means by which the list of trades generated by a strategy is executed by
the broker. While trade generation can be semi-automated or even fully
automated, the execution mechanism can be manual, semi-manual, or fully
automated. The key features of the execution system are: a professional
trading interface, automation and high speed of transactions, and
minimisation of costs (including commission, slippage and spread). </li>
<li class=“MsoNormal“>Risk management. Quantitative trade risk
management is designed to take into account all possible risks or events
that could interfere with trading. It includes not only trading risks, but
also technological risks (server failure) and broker risks (broker’s bankruptcy). The optimal
capital allocation – a set of rules, according to which the capital is
allocated in certain proportions to different strategies and deals within
the framework of these strategies – also plays an important role here. </li>
</ol><p class=“MsoNormal“>Quantitative
trading strategies</p><p class=“MsoNormal“>Let’s look at a few popular areas of
quantitative trading:</p><p class=“MsoNormal“>● Use
of alternative data.
Typically, mathematical models use price or volume data. Alternative data
includes non-traditional data, which also has predictive value in financial
markets. Such data could include, for example: weather forecasts, satellite
imagery, social media information and others. </p><p class=“MsoNormal“>● Little-known
markets. Little-known markets are less
popular and less regulated, but can still provide good trading opportunities.
Finding and exploiting market imbalances in such markets is one area for
quantitative trading.</p><p class=“MsoNormal“>● High
frequency trading (HFT). The
main characteristics that distinguish high-frequency trading are the high
execution speed, the large number of trades and the short holding time. Many
arbitrage strategies are based on this. <a target=“_blank“ href=“https://blog.roboforex.com/blog/2019/10/01/what-is-high-frequency-trading-ultimate-guide/?utm_source=forexlive.com&utm_medium=pr&utm_campaign=rf_en_external_article&utm_content=article&a=ohrb“ target=“_blank“ rel=“follow“>High frequency trading</a> requires a high degree of automation, a professional
software interface and high quality high-speed communications.</p><p class=“MsoNormal“>● Artificial
Intelligence. Using artificial
intelligence is a form of trading in which a computer gradually learns from
historical and current data. It learns from historical experience to the point
where eventually it no longer needs to be told what actions to take. Once it
reaches a certain level, the AI can make and execute trading decisions on its
own.</p><p class=“MsoNormal“>Advantages and
disadvantages of quantitative trading</p><p class=“MsoNormal“>The benefits of quantitative
trading:</p><p class=“MsoNormal“>● Quantitative trading helps you make promising trading
decisions by providing a multi-faceted analysis of the factors affecting
trading.</p><p class=“MsoNormal“>● Can find market imbalances and exploit them for profit.</p><p class=“MsoNormal“>● Promotes rational decision-making by screening out fear,
greed and other negative emotions.</p><p class=“MsoNormal“>● Quantitative trading methods improve trading efficiency by using
mathematics and computer algorithms, eliminating or minimising human error.</p><p class=“MsoNormal“>The disadvantages of quantitative
trading:</p><p class=“MsoNormal“>● Algorithmic models must be regularly adapted and changed due
to volatile financial market conditions. As market conditions change, trading
algorithms need to be reviewed and optimised.</p><p class=“MsoNormal“>● Highly labour-intensive process. High intellectual,
financial and technical costs are required.</p><p class=“MsoNormal“>● Qualitative analysis requires access to a huge amount of
different data.</p><p class=“MsoNormal“>Conclusion</p><p class=“MsoNormal“>Quantitative trading is a trading
strategy based on the complex use of sophisticated mathematical and statistical
models. It uses historical data and special algorithms to calculate optimal
trading strategies. Due to high capital requirements, equipment and automation
of trading processes, quantitative trading is mainly used by institutional
investors.</p><p class=“MsoNormal“>By Andrey Goilov, analyst at <a target=“_blank“ href=“https://roboforex.com/?utm_source=forexlive.com&utm_medium=pr&utm_campaign=rf_en_external_article&utm_content=article&a=ohrb“ target=“_blank“ rel=“follow“>RoboForex</a>.</p>

This article was written by ForexLive at forexlive.com.