October 16, 2021

An Exploration Of Financial Exchange Risk Management Strategies

34 minutes

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

Podcast Episode

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

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By Tobias Macey

4.4

100100 ratings