Emilio Tomasini

Last updated
Emilio Tomasini
Born
Italy
Occupation(s)Trader, Financial analyst, Academic

Emilio Tomasini is an Italian Financial analyst, quantitative trader, contributor to the field of technical analysis and the developer of many successful quantitative trading systems. He is famous for his book 'Trading Systems a new approach to portfolio optimization'. [1] He has been publishing since 1997 the daily newsletter Rendimento Borsa on www.emiliotomasini.it which provides technical and fundamental analysis of the financial markets. He is a financial advisor as far as quantitative trading is concerned for many major European banks and money management firms., [2] [3] [4]

Contents

Early life

Emilio Tomasini in 1995 started his career as a financial journalist in Rome for MF Milano Finanza, the leading Italian weekly financial magazine. After realising that fundamental and news analysis alone are not much useful in predicting future prices he quickly turned to quantitative finance developing the first commercial trading systems in Europe. In 1997 he started his newsletter "Rendimento Borsa" that today is one of the major Italian player in financial alternative press in Italy. [5] Emilio Tomasini served as an Adjunct Professor of Economics of the European Integration at the University of Modena and Reggio Emilia, Italy, from 2003 up to 2007 and since 2008 he is Adjunct Professor of Corporate Finance at the University of Bologna, Italy, the most ancient university in the world. [6] [7]

An international vision of trading

Emilio Tomasini is a firm believer of a broader European perspective for traders so that his trading tips and trading systems are often applied on European stocks or forgotten US futures. Emilio Tomasini is Chief Editor of the Italian edition of TRADERS' MAGAZINE www.traders-mag.it, the leading technical analysis and investment monthly publication in Europe with also a German, British, Spanish and Greek edition. [8] Every year since 1999 Emilio Tomasini organizes a European trading contest with real money TRADERS' CUP www.traders-cup.it, an event that gathers together the best European traders during a 3 months competition where both seasoned professional traders and newbies are looking for career opportunities in this launching pad for a serious start in the financial industry. [9] [10]

A hallmark book in trading systems history

There are many ways to build a portfolio of different trading systems and different prices series. Emilio Tomasini started from the premise that traditional Markowitz theory, even if formally genial, has no predictive power since correlations among different prices series are varying from decade to decade. For example, correlation among energy products and industrial and transportation price series is not any longer the same today than in the seventies. It is why in "Trading systems: a new approach to systems development and portfolio optimization" . Emilio Tomasini presents for the first time ever some easy to understand and layman tools to change the cards on the table of portfolio analysis. The book has a very high evaluation on Amazon. [11]

Related Research Articles

In finance, technical analysis is an analysis methodology for analysing and forecasting the direction of prices through the study of past market data, primarily price and volume. Behavioral economics and quantitative analysis use many of the same tools of technical analysis, which, being an aspect of active management, stands in contradiction to much of modern portfolio theory. The efficacy of both technical and fundamental analysis is disputed by the efficient-market hypothesis, which states that stock market prices are essentially unpredictable, and research on whether technical analysis offers any benefit has produced mixed results.

<span class="mw-page-title-main">Bollinger Bands</span> Statistical price volatility chart

Bollinger Bands are a type of statistical chart characterizing the prices and volatility over time of a financial instrument or commodity, using a formulaic method propounded by John Bollinger in the 1980s. Financial traders employ these charts as a methodical tool to inform trading decisions, control automated trading systems, or as a component of technical analysis. Bollinger Bands display a graphical band and volatility in one two-dimensional chart.

<span class="mw-page-title-main">Financial risk</span> Any of various types of risk associated with financing

Financial risk is any of various types of risk associated with financing, including financial transactions that include company loans in risk of default. Often it is understood to include only downside risk, meaning the potential for financial loss and uncertainty about its extent.

Algorithmic trading is a method of executing orders using automated pre-programmed trading instructions accounting for variables such as time, price, and volume. This type of trading attempts to leverage the speed and computational resources of computers relative to human traders. In the twenty-first century, algorithmic trading has been gaining traction with both retail and institutional traders. It is widely used by investment banks, pension funds, mutual funds, and hedge funds that may need to spread out the execution of a larger order or perform trades too fast for human traders to react to. A study in 2019 showed that around 92% of trading in the Forex market was performed by trading algorithms rather than humans.

<span class="mw-page-title-main">Pairs trade</span> Trading strategy

A pairs trade or pair trading is a market neutral trading strategy enabling traders to profit from virtually any market conditions: uptrend, downtrend, or sideways movement. This strategy is categorized as a statistical arbitrage and convergence trading strategy. Pair trading was pioneered by Gerry Bamberger and later led by Nunzio Tartaglia's quantitative group at Morgan Stanley in the 1980s.

<span class="mw-page-title-main">Stock trader</span> Person or company involved in trading equity securities

A stock trader or equity trader or share trader, also called a stock investor, is a person or company involved in trading equity securities and attempting to profit from the purchase and sale of those securities. Stock traders may be an investor, agent, hedger, arbitrageur, speculator, or stockbroker. Such equity trading in large publicly traded companies may be through a stock exchange. Stock shares in smaller public companies may be bought and sold in over-the-counter (OTC) markets or in some instances in equity crowdfunding platforms.

<span class="mw-page-title-main">Computational finance</span>

Computational finance is a branch of applied computer science that deals with problems of practical interest in finance. Some slightly different definitions are the study of data and algorithms currently used in finance and the mathematics of computer programs that realize financial models or systems.

In finance, a trading strategy is a fixed plan that is designed to achieve a profitable return by going long or short in markets. The main reasons that a properly researched trading strategy helps are its verifiability, quantifiability, consistency, and objectivity.

The following outline is provided as an overview of and topical guide to finance:

Stock market prediction is the act of trying to determine the future value of a company stock or other financial instrument traded on an exchange. The successful prediction of a stock's future price could yield significant profit. The efficient-market hypothesis suggests that stock prices reflect all currently available information and any price changes that are not based on newly revealed information thus are inherently unpredictable. Others disagree and those with this viewpoint possess myriad methods and technologies which purportedly allow them to gain future price information.

An automated trading system (ATS), a subset of algorithmic trading, uses a computer program to create buy and sell orders and automatically submits the orders to a market center or exchange. The computer program will automatically generate orders based on predefined set of rules using a trading strategy which is based on technical analysis, advanced statistical and mathematical computations or input from other electronic sources.

In finance, model risk is the risk of loss resulting from using insufficiently accurate models to make decisions, originally and frequently in the context of valuing financial securities. However, model risk is more and more prevalent in activities other than financial securities valuation, such as assigning consumer credit scores, real-time probability prediction of fraudulent credit card transactions, and computing the probability of air flight passenger being a terrorist. Rebonato in 2002 defines model risk as "the risk of occurrence of a significant difference between the mark-to-model value of a complex and/or illiquid instrument, and the price at which the same instrument is revealed to have traded in the market".

Portfolio optimization is the process of selecting the best portfolio, out of the set of all portfolios being considered, according to some objective. The objective typically maximizes factors such as expected return, and minimizes costs like financial risk. Factors being considered may range from tangible to intangible.

<span class="mw-page-title-main">John Bollinger</span> American author and financial analyst

John A. Bollinger is an American author, financial analyst, contributor to the field of technical analysis and the developer of Bollinger Bands. His book Bollinger on Bollinger Bands (2001), has been translated into eleven languages. Since 1987, he has published the Capital Growth Letter, a newsletter which provides technical analysis of the financial markets.

Arizona Financial Text System (AZFinText) is a textual-based quantitative financial prediction system written by Robert P. Schumaker of University of Texas at Tyler and Hsinchun Chen of the University of Arizona.

Quantitative analysis is the use of mathematical and statistical methods in finance and investment management. Those working in the field are quantitative analysts (quants). Quants tend to specialize in specific areas which may include derivative structuring or pricing, risk management, investment management and other related finance occupations. The occupation is similar to those in industrial mathematics in other industries. The process usually consists of searching vast databases for patterns, such as correlations among liquid assets or price-movement patterns.

Perry J. Kaufman is an American systematic trader, rocket scientist, index developer, and quantitative financial theorist. He is considered a leading expert in the development of fully algorithmic trading programs.

<span class="mw-page-title-main">Mathematical finance</span> Application of mathematical and statistical methods in finance

Mathematical finance, also known as quantitative finance and financial mathematics, is a field of applied mathematics, concerned with mathematical modeling of financial markets.

Systematic trading is a way of defining trade goals, risk controls and rules that can make investment and trading decisions in a methodical way.

ESG Quant is an investment strategy, developed by Arabesque Partners, which involves quantitative equity investing while utilizing ESG information, often referred to as "non-financial" information. ESG Quant strategies are implemented within systematic trading or quantitative trading approaches that leverage a large and growing collection of commercial ESG, alternative and non-profit or academic datasets. As such, there is no human judgment or discretionary buy-sell decision making; rather, “in a pure quant model the final decision to buy or sell is made by the model” or through the “utilization of an expert system that replicates previously captured actions of real traders.”

References

  1. ↑ "Trading Systems Review - Urban Jaekle & Emilio Tomasini". harriman-house.com.
  2. ↑ "When Articles were sent by Train to the Magazine". tradersonline-mag.com.
  3. ↑ "Tradando, la Borsa spiegata agli operatori". ilrestodelcarlino.it.
  4. ↑ "I PIU' FORTI DI PIAZZA AFFARI". ricerca.repubblica.it.
  5. ↑ "Dr. Emilio Tomasini - Model Trading". tenpointtrading.com.
  6. ↑ "Emilio Tomasini". unibo.it.
  7. ↑ "Emilio Tomasini". ilgiornale.it.
  8. ↑ "Emilio Tomasini". unibo.it.
  9. ↑ "Emilio Tomasini". unibo.it.
  10. ↑ "Professor Emilio Tomasini". tradersworld.de.
  11. ↑ Tomasini, Emilio; Jaekle, Urban (2009). Trading Systems: A New Approach to System Development and Portfolio Optimisation. ISBN   9781905641796.
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