Trading Catechism

Discussion in 'Trading' started by nitro, Oct 19, 2015.

  1. nitro

    nitro

    #281     Jun 27, 2016
  2. nitro

    nitro

    Ok buit my first OpenCL program. This is on my laptop with an Intel GPU. From such humble beginnings bigger things come. The journey of a thousand miles....

    The goal is 100k options per second on an FPGA. First I will do Monte Carlo, but eventually I want to do bi/tri-nomial trees.

    Code:
    Platforms (2):
        [0] Intel(R) OpenCL [Selected]
        [1] Experimental OpenCL 2.1 CPU Only Platform
    Devices (2):
        [0] Intel(R) HD Graphics 5500 [Selected]
        [1] Intel(R) Core(TM) i3-5005U CPU @ 2.00GHz
    Build program options: "-D__DO_FLOAT__ -cl-denorms-are-zero -cl-fast-relaxed-math -cl-single-precision-constant -DNSAMP=262144"
    Running Monte Carlo options pricing for 65536 options, with 262144 samples
    Size of memory region for each array: 262144 bytes
    Using risk free rate = 0.05 and volatility = 0.2
    Host time: 68.8747 sec.
    Host perf: 951.525 Options per second <-- The FPGA version will be 100x more throughput, 
    and the latency will be in the low single digit microseconds.
    
     
    #282     Jun 27, 2016
  3. nitro

    nitro

    There is strong multicollinearity between the independent markets, making it difficult to find good timing. That is not just true because of the high volatility, which usually leads to high multicollinearity, but seems to be true in general these days.

    Correlation has gone to 1, without the crash part necessarily.

    [As a side note, from a mathematical perspective, it is interesting why multicollinearity is a problem. Almost everything comes down to invertibility: "In case of perfect multicollinearity the design matrix is singular and therefore cannot be inverted. Under these circumstances, for a general linear model {\displaystyle y=X\beta +\epsilon }[​IMG], the ordinary least-squares estimator {\displaystyle {\hat {\beta }}_{OLS}=(X^{\top }X)^{-1}X^{\top }y}[​IMG] does not exist."]
     
    #283     Jun 29, 2016
  4. nitro

    nitro

    Who Made Money in the Brexit Chaos? Machines, Not Humans
    In the weeks leading up to the Brexit vote, the trading models at many firms adopted a defensive pose.
    By
    CAROLYN CUI,

    BRADLEY HOPE and

    GREGORY ZUCKERMAN
    Updated June 29, 2016 10:19 a.m. ET


    Wall Street is tallying up the winners and losers after the severe market reaction to last week’s Brexit vote. One theme has emerged early—the computers got it right and the humans got it wrong.

    http://www.wsj.com/articles/in-brexit-trading-machine-beats-man-1467158146
     
    #284     Jun 29, 2016
  5. nitro

    nitro

    20160629_151153.jpg The SoC is a little smaller than my mouse but packs a great learning FPGA. All you need is a bone dry cappuccino, and we are ready to dive in and learn.
     
    #285     Jun 29, 2016
  6. nitro

    nitro

    This little SoC has so far given me nothing but pleasure. The SoC is running a web sever. When you browse to the SoC, you can do all sorts of things instantly that manipulates the board through the FPGA. Simple things like manipulating LEDs, but this gains you confidence.

    Part of the system shows up on Windows 10 desktop as a "disk". There you install the drivers by double-clicking on the 32/64 bit version of your host OS. It took five seconds. After that, with the SD card already installed on the SoC from the factory running Linux, I guessed that it was running ssh and VNC. I guessed the VNC address and it immediately came up!

    Ordered the AdaFruit TFT display so that I can run this and other demos. Incredible the FPGA speedups, as you can see when the demo switches from FPGA to CPU:

     
    Last edited: Jun 29, 2016
    #286     Jun 29, 2016
  7. nitro

    nitro

     
    #287     Jun 29, 2016
  8. Oh, ET does accommodate Latex, after all.
     
    #288     Jun 29, 2016
  9. nitro

    nitro

    Well, sort of. It would be nice if all of it showed in math notation and not LaTex.
     
    #289     Jun 29, 2016
  10. Right, half of it did not render correctly, but I assumed it was because you had some syntax errors.
     
    #290     Jun 29, 2016