Introduction to Foreign Trade Analytics1.pptx

Analytics

1. Introduction to (Foreign)Trade Analytics

2. Background Recent technological developments have facilitated the exchange of information, securities and funds worldwide in financial markets which is a global activity. Electronic trading not only improves transparency of predominant prices in a market but also provides more information such as the depth of a market which indicates the potential supply and demand away from the current market price. Also the exponential increase in computing power and data storage in the last decade has resulted in the rapid development of machine learning and data mining with diverse applications in economics, science, engineering, and technology. Many researchers have started using machine learning models on financial that have given rise to considerable predictive power.

3. Trading Analytics Analytics tools have only recently become accessible to all, and incorporating them into the trading process can be a daunting task—especially if one is new to trading It's not easy for the uninitiated to know where to start, or which analytics tools are best for the job. Hence we will first make an attempt to understand the basics of trading analytics and how they can improve the trading performance. We'll walk through some of the most popular analytics tools/options.

4. What Trade Analytics do? In general, analytics tools pull in two categories of data: historical price data, and independent variables—the data traders believe may influence the forward direction of an asset’s price.  The end goal of any trading analytics platform is to help the trader better understand the relationship between these two (or multiple) variables. For example, a trader might want to evaluate the connection between the forward price of the S&P 500 tracking ETF (SPY) and the historical volatility of the S&P 500. Does the price of SPY tend to increase or decrease in the wake of a volatility spike? Trading analytics can help answer this question.

5. Advantage Analytics? Analytics give traders a formal framework for understanding the meaning of events and anticipating the ensuing market activity. This gives them context and places traders who use analytics at an advantage, helping them improve performance and reduce mistakes. And of course, when markets move in unexpected ways, traders who rely on analytics often find themselves better prepared than those who do not. However, it is crucial that you understand what you are doing

6. Performing Trading Analytics- Options There are an increasing number of trading analytics options available to traders today. Let’s take a look at some top tools on offer right now. For investment professionals that make portfolio-based decisions, the Bloomberg terminal is a standard option. Keep in mind that these tools are priced for the enterprise. A Bloomberg terminal will cost you approximately $2,000 per month or $24,000 per year, making them out of reach for the typical retail trader. For retail traders who can know how to code, there are many platforms available for the purpose of building your own analytics tools. These include open source packages SAS, R , MATLAB , Python along with software products offered by companies. For traders who cannot code—or wish to spend their time doing something else— Customised trading analytics tools are there that can be executed without code. The benefit of this approach is that it delivers traders actionable insights quickly so they can avoid spending time building their own software if they need to run statistical tests. But it also costs money depending on your requirement.

7. How Export Companies Use Analytics In International trade, there are several trade blocks and International blocks present. These trade blocks often have specific rules and regulations that can change the statistics and the overall profits and losses of exports. T hese specific tools that can be termed analytics, keep track of the regular up-downs of international trade.

8. How Do you Analyze Export Data? Trade Statistics One major objective of Forign Trade Analytics is u nderstanding the pattern of trade, trade policies of a particular country, and specific trade blocks in general. It is keeping track of various policies and programs introduced by the Trade blocks all over the world. It requires specific tools to analyze the strategic position of export conditions of the world. Individual companies can use these to diversify trade and adjust the sail towards them.

9. Some Basic Rules for Using Analytics Tools The person/company must be quantitatively educated. The person person/company should be well versed with technology  T he person/company should know about the exports and the imports Export companies, while dealing with these analytic tools, should often upgrade themselves and their employees.