what is external series?

Discussion in 'Strategy Development' started by Gordon Gekko, Jul 19, 2003.

  1. someone please briefly explain what external series means. a trading example would be nice.

    thx
     
  2. Foz

    Foz

    Can you give us the context in which it was used?

    I believe an external series would be a time series other than the price of your tradeable.

    If you buy gold when the yield curve is inverted, then the slope of the yield curve would be your "external series".

    If you trade MSFT based on the e-minis, then the e-mini prices are your external series -- even though it is a price series, it is external to MSFT.