A Reflection of Lessons from Trading Simulations <\/p>\n
Introduction<\/p>\n
Provide a key brief of what the trading simulation was all about.<\/p>\n
Define trading simulations and importance to business-related professionals (Zhang, Zohren, & Roberts, 2020).<\/p>\n
Structure of the report<\/p>\n
Data Analysis<\/p>\n
Analyze data from your own trading history<\/p>\n
Give a brief history of what you did and how you did it<\/p>\n
What informed your key decisions?<\/p>\n
What criteria did you make in decision making?<\/p>\n
Would you change anything now that you have gained experience on key trading strategies?<\/p>\n
What literature did you use to inform some of your decisions?<\/p>\n
Summary of the key takeaways from individual trading history<\/p>\n
Demonstrate an Understanding of Trading Strategies<\/p>\n
Define trading strategies<\/p>\n
Mention types of trading strategies<\/p>\n
Which key trading strategies do you regard as best practices and why?<\/p>\n
Considerations of relevant trading issues (such as, but not limited to, profits\/loss, risk, etc).<\/p>\n
Literature review (synthesise and blend Material) on key and relevant trading issues<\/p>\n
Key <\/p>\n
Congruence with your own experience<\/p>\n
Linking Personal Observations with Theory and Empirical Evidence<\/p>\n
Why simulations vary<\/p>\n
Behavioral aspects of trading<\/p>\n
Profitability: What is it and how does it impact trading?<\/p>\n
Risk: What is it and how does it impact trading?<\/p>\n
Liquidity: What is it and how does it impact trading?<\/p>\n
Price Impact: What is it and how does it impact trading?<\/p>\n
What are you personal definitions of the above and how did they impact your simulation exercises?<\/p>\n
Limitations of Simulation<\/p>\n
Acknowledge key limitations of your simulation and analysis<\/p>\n
How did they impact the entire exercise?<\/p>\n
Literature Review<\/p>\n
Introduction<\/p>\n
Brief overview of liquidity risk<\/p>\n
Structure of the literature review<\/p>\n
What is Liquidity Risk?<\/p>\n
Provide definition from the perspective of various scholars<\/p>\n
Funding liquidity risk<\/p>\n
Market liquidity risk<\/p>\n
Issues in Liquidity Risk and Crisis<\/p>\n
A liquidity crisis occurs when demand for liquidity rises while supply falls across a large number of financial institutions or other enterprises. (Discuss)<\/p>\n
Widespread maturity mismatches across banks and other enterprises are at the basis of a liquidity crisis, resulting in a scarcity of cash and other liquid assets when they are required. (Discuss)<\/p>\n
Large, negative economic shocks or typical cyclical fluctuations in the economy may both generate liquidity crises. (Discuss)<\/p>\n
Sources of Liquidity Risk<\/p>\n
Lack of Cash Flow Management. Cash flow management gives a business good visibility into potential liquidity challenges and opportunities. …<\/p>\n
Inability to Obtain Financing.<\/p>\n
Unexpected Economic Disruption.<\/p>\n
Unplanned Capital Expenditures.<\/p>\n
Profit Crisis.<\/p>\n
Causes of Liquidity Issues<\/p>\n
Major causes according to extant literature<\/p>\n
Liquidity risk management\u00a0<\/p>\n
Ways to manage liquidity risk<\/p>\n
Key Takeaways From Review of Literature<\/p>\n
Liquidity defined.<\/p>\n
Liquidity risk categories<\/p>\n
Rudimentary indicator of liquidity<\/p>\n
References<\/p>\n
Abdella, J., & Shuaib, K. (2018). Peer to peer distributed energy trading in smart grids: A survey.\u00a0Energies,\u00a011(6), 1560.<\/p>\n
Abouloula, K., Habil, B. E., & Krit, S. D. (2018). Money management limits to trade by robot trader for automatic trading.\u00a0International Journal of Engineering, Science and Mathematics,\u00a07(3), 195-205.<\/p>\n
Kyriazis, N. A. (2019). A survey on efficiency and profitable trading opportunities in cryptocurrency markets.\u00a0Journal of Risk and Financial Management,\u00a012(2), 67.<\/p>\n
Rundo, F. (2019). Deep LSTM with reinforcement learning layer for financial trend prediction in FX high frequency trading systems.\u00a0Applied Sciences,\u00a09(20), 4460.<\/p>\n
Tushar, W., Saha, T. K., Yuen, C., Smith, D., & Poor, H. V. (2020). Peer-to-peer trading in electricity networks: An overview.\u00a0IEEE Transactions on Smart Grid,\u00a011(4), 3185-3200.<\/p>\n
Zhang, Z., Zohren, S., & Roberts, S. (2020). Deep reinforcement learning for trading.\u00a0The Journal of Financial Data Science,\u00a02(2), 25-40.<\/p>\n
Zhou, Y., Wu, J., Long, C., & Ming, W. (2020). State-of-the-art analysis and perspectives for peer-to-peer energy trading.\u00a0Engineering,\u00a06(7), 739-753.<\/p>\n
Tavana, M., Abtahi, A. R., Di Caprio, D., & Poortarigh, M. (2018). An Artificial Neural Network and Bayesian Network model for liquidity risk assessment in banking.\u00a0Neurocomputing,\u00a0275, 2525-2554.<\/p>\n
Febi, W., Sch\u00e4fer, D., Stephan, A., & Sun, C. (2018). The impact of liquidity risk on the yield spread of green bonds.\u00a0Finance Research Letters,\u00a027, 53-59.<\/p>\n
Ahamed, F. (2021). Determinants of Liquidity Risk in the Commercial Banks in Bangladesh.\u00a0European Journal of Business and Management Research,\u00a06(1), 164-169.<\/p>\n
Mohammad, S., Asutay, M., Dixon, R., & Platonova, E. (2020). Liquidity risk exposure and its determinants in the banking sector: A comparative analysis between Islamic, conventional and hybrid banks.\u00a0Journal of International Financial Markets, Institutions and Money,\u00a066, 101196.<\/p>\n
Goodhart, C. (2008). Liquidity risk management.\u00a0Banque de France Financial Stability Review,\u00a011, 39-44.<\/p>\n
Brunnermeier, M. K., & Yogo, M. (2009). A note on liquidity risk management.\u00a0American Economic Review,\u00a099(2), 578-83.<\/p>\n
Cornett, M. M., McNutt, J. J., Strahan, P. E., & Tehranian, H. (2011). Liquidity risk management and credit supply in the financial crisis.\u00a0Journal of financial economics,\u00a0101(2), 297-312.<\/p>\n
Vento, G. A., & La Ganga, P. (2009). Bank liquidity risk management and supervision: which lessons from recent market turmoil.\u00a0Journal of Money, Investment and Banking,\u00a010(10), 78-125.<\/p>\n","protected":false},"excerpt":{"rendered":"
A Reflection of Lessons from Trading Simulations Introduction Provide a key brief of what the trading simulation was all about.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-52029","post","type-post","status-publish","format-standard","hentry"],"yoast_head":"\n