Options Based Management

The widespread adoption of AI and machine learning is revolutionizing many industries today. Once these technologies are combined with the programmatic availability of historical and real-time financial data, the financial industry will also change fundamentally. With this practical book, you'll learn how to use AI and machine learning to discover statistical inefficiencies in financial markets and exploit them through algorithmic trading.Author Yves Hilpisch shows practitioners, students, and academics in both finance and data science practical ways to apply machine learning and deep learning algorithms to finance. Thanks to lots of self-contained Python examples, you'll be able to replicate all results and figures presented in the book.In five parts, this guide helps you:- Learn central notions and algorithms from AI, including recent breakthroughs on the way to artificial general intelligence (AGI) and superintelligence (SI)- Understand why data-driven finance, AI, and machine learning will have a lasting impact on financial theory and practice- Apply neural networks and reinforcement learning to discover statistical inefficiencies in financial markets- Identify and exploit economic inefficiencies through backtesting and algorithmic trading--the automated execution of trading strategies- Understand how AI will influence the competitive dynamics in the financial industry and what the potential emergence of a financial singularity might bring about

The financial industry has recently adopted Python at a tremendous rate, with some of the largest investment banks and hedge funds using it to build core trading and risk management systems. Updated for Python 3, the second edition of this hands-on book helps you get started with the language, guiding developers and quantitative analysts through Python libraries and tools for building financial applications and interactive financial analytics.Using practical examples throughout the book, author Yves Hilpisch also shows you how to develop a full-fledged framework for Monte Carlo simulation-based derivatives and risk analytics, based on a large, realistic case study. Much of the book uses interactive IPython Notebooks.

Algorithmic trading, once the exclusive domain of institutional players, is now open to small organizations and individual traders using online platforms. The tool of choice for many traders today is Python and its ecosystem of powerful packages. In this practical book, author Yves Hilpisch shows students, academics, and practitioners how to use Python in the fascinating field of algorithmic trading.You'll learn several ways to apply Python to different aspects of algorithmic trading, such as backtesting trading strategies and interacting with online trading platforms. Some of the biggest buy- and sell-side institutions make heavy use of Python. By exploring options for systematically building and deploying automated algorithmic trading strategies, this book will help you level the playing field.- Set up a proper Python environment for algorithmic trading- Learn how to retrieve financial data from public and proprietary data sources- Explore vectorization for financial analytics with NumPy and pandas- Master vectorized backtesting of different algorithmic trading strategies- Generate market predictions by using machine learning and deep learning- Tackle real-time processing of streaming data with socket programming tools- Implement automated algorithmic trading strategies with the OANDA and FXCM trading platforms

Reinforcement learning (RL) has led to several breakthroughs in AI. The use of the Q-learning (DQL) algorithm alone has helped people develop agents that play arcade games and board games at a superhuman level. More recently, RL, DQL, and similar methods have gained popularity in publications related to financial research. This book is among the first to explore the use of reinforcement learning methods in finance. Author Yves Hilpisch, founder and CEO of The Python Quants, provides the background you need in concise fashion. ML practitioners, financial traders, portfolio managers, strategists, and analysts will focus on the implementation of these algorithms in the form of self-contained Python code and the application to important financial problems. This book covers: - Reinforcement learning - Deep Q-learning - Python implementations of these algorithms - How to apply the algorithms to financial problems such as algorithmic trading, dynamic hedging, and dynamic asset allocation This book is the ideal reference on this topic. You'll read it once, change the examples according to your needs or ideas, and refer to it whenever you work with RL for finance. Dr. Yves Hilpisch is founder and CEO of The Python Quants, a group that focuses on the use of open source technologies for financial data science, AI, asset management, algorithmic trading, and computational finance.

Nur der Realoptionsansatz ermöglicht es dem Management, fundierte Entscheidungen herbeizuführen. Seine konsequente Anwendung erlaubt letztlich den Übergang vom Value Based Management zu einem wesentlich leistungsstärkeren Paradigma der Unternehmensführung, dem Options Based Management.

Das Buch stellt erstmals in einheitlicher, integrierter Form zentrale Aspekte der Finanzierung, Wertorientierung und Corporate Governance von Unternehmen vor. Es bietet dadurch eine systematische Orientierung zu diesen zusammenhängenden Themenbereichen, wobei konzeptionelle Aspekte durch Praxisbeispiele illustriert und durch empirische Ergebnisse untermauert werden. Anwendungshinweise ergänzen die jeweiligen Ausführungen. Yves Hilpisch bietet dem Leser wichtige Grundlagen und Einsichten, um jüngste Entwicklungen auf dem Kapitalmarkt und in der öffentlichen Diskussion werten und in Perspektive setzen zu können.

Supercharge options analytics and hedging using the power of Python Derivatives Analytics with Python shows you how to implement market-consistent valuation and hedging approaches using advanced financial models, efficient numerical techniques, and the powerful capabilities of the Python programming language. This unique guide offers detailed explanations of all theory, methods, and processes, giving you the background and tools necessary to value stock index options from a sound foundation. You'll find and use self-contained Python scripts and modules and learn how to apply Python to advanced data and derivatives analytics as you benefit from the 5,000+ lines of code that are provided to help you reproduce the results and graphics presented. Coverage includes market data analysis, risk-neutral valuation, Monte Carlo simulation, model calibration, valuation, and dynamic hedging, with models that exhibit stochastic volatility, jump components, stochastic short rates, and more. The companion website features all code and IPython Notebooks for immediate execution and automation. Python is gaining ground in the derivatives analytics space, allowing institutions to quickly and efficiently deliver portfolio, trading, and risk management results. This book is the finance professional's guide to exploiting Python's capabilities for efficient and performing derivatives analytics. - Reproduce major stylized facts of equity and options markets yourself - Apply Fourier transform techniques and advanced Monte Carlo pricing - Calibrate advanced option pricing models to market data - Integrate advanced models and numeric methods to dynamically hedge options Recent developments in the Python ecosystem enable analysts to implement analytics tasks as performing as with C or C++, but using only about one-tenth of the code or even less. Derivatives Analytics with Python - Data Analysis, Models, Simulation, Calibration and Hedging shows you what you need to know to supercharge your derivatives and risk analytics efforts.