An Exploration Of Financial Exchange Risk Management Strategies
October 15th, 2021
34 mins 30 secs
Your Hosts
About this Episode
Summary
The world of finance has driven the development of many sophisticated techniques for data analysis. In this episode Paul Stafford shares his experiences working in the realm of risk management for financial exchanges. He discusses the types of risk that are involved, the statistical methods that he has found most useful for identifying strategies to mitigate that risk, and the software libraries that have helped him most in his work.
Announcements
- Hello and welcome to the Data Engineering Podcast, the show about modern data management
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- Your host as usual is Tobias Macey and today I’m interviewing Paul Stafford about building risk models to guard against financial exchange rate volatility
Interview
- Introductions
- How did you get introduced to Python?
- What are the principles involved in risk management, and how are statistical methods used?
- How did you get involved in financial markets?
- In what ways did your background in science and engineering prepare you for work in finance and risk management?
- What are the tools that you have found most useful in your career in finance?
- How have recent trends such as the widespread adoption of deep learning impacted the capabilities and risks present in foreign exchange strategies?
- What are the challenges that you face in obtaining and validating the input data that you are relying on for building financial and statistical models?
- How has the volatility of the pandemic impacted the robustness and resilience of your predictive capabilities?
- What are the areas where the available tools are typically insufficient?
- What are the most interesting, innovative, or unexpected strategies or techniques that you have seen applied to risk management?
- What are the most interesting, unexpected, or challenging lessons that you have learned while working in risk management?
- What are the economic and industry trends that you are keeping a close eye on for your work at Deaglo and your own personal projects?
Keep In Touch
Picks
- Tobias
- The Vault (movie)
- Paul
- Motorcycle Trip of the Grand Canyon
Links
- Deaglo Partners, LLC.
- Value At Risk (VaR)
- Black-Scholes Equation
- Linear Algebra
- Principal Component Analysis
- Eigenvectors and Eigenvalues
- Markov Chain Monte Carlo
- Violin Plot
- Kurtosis
- PyMC3
- Bayesian Regression
- Constrained Optimization
- Ethereum
- Smart Contracts
- Behavioral Finance
- Black Swan by Nassim Nicholas Taleb (affiliate link)
- SciPy Convention
- RealPython
- 3Blue1Brown
- Sentiment Analysis
The intro and outro music is from Requiem for a Fish The Freak Fandango Orchestra / CC BY-SA