5.1 Trading strategies

This paper covers:

• The efficient market hypothesis
• Price predictability
• Obtaining exposure to investments (long and short exposures, exposures to credit default rates, a range of option exposures, and access to retail investors)
• Genuine arbitrage (a FRA example, a spot/forward FX relationship, a futures market example, option examples)
• Complex trading dressed up as arbitrage (including the rise of complex trading models, volatility arbitrage, statistical arbitrage, correlation trading, and others)
• Portfolio simulation and optimisation

This paper has 16 pages and the Excel 1 sheet