Praise for Energy and Power Risk Management"Energy and Power Risk Management identifies and addresses the key issues in the development of the turbulent energy industry and the challenges it poses to market players. An insightful and far-reaching book written by two renowned professionals."-Helyette Geman, Professor of Finance University Paris Dauphine and ESSEC"The most up-to-date and comprehensive book on managing energy price risk in the natural gas and power markets. An absolute imperative for energy traders and energy risk management professionals."-Vincent Kaminski, Managing Director Citadel Investment Group LLC"Eydeland and Wolyniec's work does an excellent job of outlining the methods needed to measure and manage risk in the volatile energy market."-Gerald G. Fleming, Vice President, Head of East Power Trading, TXU Energy Trading"This book combines academic rigor with real-world practicality. It is a must-read for anyone in energy risk management or asset valuation."-Ron Erd, Senior Vice President American Electric Power
A detailed look at an important hedge fund strategyWritten by a fund manager who invests solely in merger arbitrage, also referred to as risk arbitrage, and other event-driven strategies, Merger Arbitrage is the definitive book on how this alternative hedge fund strategy works. Initial chapters are dedicated to the ins and outs of the strategy–cash mergers versus stock for stock mergers, legal aspects of mergers, and pitfalls of the merger process–while later chapters focus on giving the reader sound advice for integrating merger arbitrage into an investment portfolio. Merger Arbitrage helps readers understand leverage and options, shorting stocks, and legal aspects of merger arbitrage, including seeking appraisal or filing lawsuits for inadequate merger consideration. For those looking to gain an edge in the merger arbitrage arena, this book has everything they need to succeed.Thomas F. Kirchner, CFA (New York, NY), is the founder and portfolio manager of Pennsylvania Avenue Funds (www.pennavefunds.com), which invests in merger arbitrage and other event-driven strategies.
This book provides a comprehensive, up-to-date treatment of the application of Fourier analyses to pricing standard and exotic options, and discusses three different factors: stochastic volatility, stochastic interest rate and random jump. The modeling of volatility and interest rate falls into four different alternatives: constant, mean-reverting Ornstein-Uhlenbeck process, mean-reverting square root process and mean-reverting double square root process, while random jumps are specified as pure jumps, lognormal jumps and Pareto jumps. This framework called Modular Pricing of Options includes most of the existing options pricing formulas as special cases.
Sometimes even the most thorough homework on fundamentals fails to pinpoint the best time to buy a stock or take profits. Technical analysis helps market players predict the price behavior of a stock, commodity, or any financial instrument, giving clues about the course a trade may take in the coming weeks and months. When market timing is of the essence in making logical, informed decisions about a trade's future, technical analysis is the tool.In New Thinking in Technical Analysis: Trading Models from the Masters, a dozen top authorities reveal their techniques and strategies for successful trading. This book offers market participants a treasury of tools to improve their investment performance, each from a unique and time-tested perspective. Readers will find immense value in the straightforward, user-friendly, application-rich presentation of market dynamics forecasting in this invaluable guide. Enhanced with over 170 charts and illustrations, New Thinking will become the primary companion of every trader seeking to gain a competitive edge.
"The computer can do more than show us pretty pictures. [It] can optimize, backtest, prove or disprove old theories, eliminate the bad ones and make the good ones better. Cybernetic Trading Strategies explores new ways to use the computer and finds ways to make a valuable machine even more valuable." --from the Foreword by John J. Murphy.Until recently, the computer has been used almost exclusively as a charting and data-gathering tool. But as traders and analysts have quickly discovered, its capabilities are far more vast. Now, in this groundbreaking new book, Murray Ruggiero, a leading authority on cybernetic trading systems, unlocks their incredible potential and provides an in-depth look at the growing impact of advanced technologies on intermarket analysis. A unique resource, Cybernetic Trading Strategies provides specific instructions and applications on how to develop tradable market timing systems using neural networks, fuzzy logic, genetic algorithms, chaos theory, and machine induction methods.Currently utilized by some of the most powerful financial institutions in the world--including John Deere and Fidelity Investments--today's advanced technologies go beyond subjective interpretations of market indicators to enhance traditional analysis. As a result, existing trading systems gain a competitive edge. Ruggiero reveals how "incorporating elements of statistical analysis, spectral analysis, neural networks, genetic algorithms, fuzzy logic, and other high-tech concepts into a traditional technical trading system can greatly improve the performance of standard trading systems." For example: spectral analysis can be used to detect when a market is trending earlier than classical indicators such as ADX.Drawing on his extensive research on market analysis, Ruggiero provides an incisive overview of cyber-systems--systems that, when applied correctly, can increase trading returns by as much as 200% to 300%. The author covers a wide range of important topics, examining classical technical analysis methodologies and seasonal trading, as well as statistically based market prediction and the mechanization of subjective methods such as candlestick charts and the Elliott Wave. Precise explanations and dozens of real-world examples show you how to: * Incorporate advanced technologies into classical technical analysis methodologies. * Identify which of these technologies have the most market applicability. * Build trading systems to maximize reliability and profitability based on your own risk/reward criteria.Most importantly, Cybernetic Trading Strategies takes you step by step through system testing and evaluation, a crucial step for controlling risk and managing money.With up-to-date information from one of the field's leading authorities, Cybernetic Trading Strategies is the definitive guide to developing, implementing, and testing today's cutting-edge computer trading technologies.
A noted expert explains how to trade and hedge volatility in the fast-growing financial marketsTrading and hedging volatility is an increasingly important topic in the wake of the recent financial crisis. Trading Volatility in Risky Markets examines how active traders can profit from the profusion of new volatility-based products and how money managers can smooth their returns by hedging volatility risk. Author Michael McCarty explains traditional and new measures of volatility; the structure and mechanics of new volatility tools; and how these tools can be used by different levels of market participants to invest, trade, and hedge more effectively.While the history of trading volatility-based instruments is brief, McCarty combines the historic data with analysis to provide a taxonomy of how volatility measures reflect market sentiment and directional bias. He also includes an in-depth explanation of VIX options, futures, and exchange-traded notes so that participants will be better prepared to use these tools confidently and avoid unexpected outcomes.Offers an important resource for traders and money managers who are tapping into new volatility-based products to speculate, hedge, and gauge market sentimentIncludes guidance for trading the VIX Index Futures and VIX Index optionsAuthor Michael McCarty is noted for his research on volatility and detecting unusual option activity in stocks about to crashTrading Volatility in Risky Markets provides an in-depth explanation of some of the most misunderstood aspects of volatility-based instruments and shows how these instruments can be used to forecast markets, trade, and hedge.
![The Volatility Edge in Options Trading: New Technical Strategies for Investing in Unstable Markets [VOLATILITY EDGE IN OPTIONS -OS]](http://ecx.images-amazon.com/images/I/41C%2BE9fAYPL._SL160_.jpg)
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