It will still take a long time before Brazil stops figure between the emergent economies. The liquidity of our assets is just a fraction of the ones traded in other developed markets. According to the WorldBank, in 2015, Spain had a total of 3,623 of listed domestic companies. In Brazil, we had only 345. The APPL market cap is bigger then all of the Brazilians market caps together. With all this delay, is natural that the hedge fund industry will be backward too.
This project was born with the goal of share the experiences i got working as a quantitative trader/analyst in a Brazilian hedge fund. As you can imagine, this a very rare post in Brazil. There are just a few of them working around but mainly trading options or pure-arbitrage strategies between mini contracts and the full ones. Almost nothing about Machine Learning, Smart Betas, CTAs, etc.
The main part of the alpha in the Brazilian’s hedge fund is obtained by the old-school discretionary way.But don’t misunderstand me, i’m not criticizing who does it. My point here is that there’s a lot of things to be explored in our market.
K-Nearest Neighbors, K-means, Neural Newtorks, Deep Learning, Genetic programming, Portifolio Optimization, Time Series Analisys, Statistics, Trend Following, Volatility trading, Risk Models, Python, Pandas, Numpy, etc, are some of the topics i’ll try to cover in the blog. Obviously, all applied to the Brazilian market.
The blog will be updated by me, Rodrigo Soares Tadewald. You can make contact by firstname.lastname@example.org.
Any suggestions will always be welcome.