Trade Strategy and Execution for CFA Level III - Part 1

Learn essential trading strategy concepts and execution techniques in this 53-minute lecture focused on Level III CFA® Program curriculum. Master key trading motivations, strategy selection inputs, and benchmark evaluation for trade execution. Explore critical factors in trading algorithm selection while understanding various trading procedures including profit-seeking, risk management, hedging, and liquidity management. Dive into order characteristics, market conditions, and the trader's dilemma, while gaining practical knowledge about intraday benchmarks, price targets, and smart order routing systems. Examine both high-touch and low-touch trading approaches, along with the implementation of scheduled algorithms and dark strategies for optimal trading performance.

Syllabus

Introduction
Motivation to Trade
Recap
Machine Learning
Trading Procedures
Profits Seeking
Trade Urgency
Risk Management
Hedging
Cash Flow Needs
Cash Drag
Liquidity Management
Security Selection
Risk Return
Margin Calls
Derivatives
Key Inputs
Order Characteristics
Security Characteristics
Market Conditions
Traders Dilemma
Decision Price
intraday benchmarks
price targets
seeking liquidity
select and justify
shortterm alpha
longterm alpha
cash flow driven
high touch trading
low touch trading
hightouch trading
objectives
selection criteria
scheduled algorithms
schedule algorithms
arrival price algorithms
dark strategies
smart order routers
advantages and disadvantages