Finance Jargons


(Simple) moving average (SMA) crossover: Calculate rolling averages on different window sizes. Do something when they cross over each other.
​Long/short equity: take long positions in stocks you expect to raise that are expected to increase in value and short positions in stocks that are expected to decline. Long/short means...
  • To take long position in a stock: Buy stocks at a low price; sell them when the price gets high. Used when you expect the stock to increase in value.
  • To take short position in a stock: When you expect a stock to decrease in value, borrow some shares from your broker, sell the shares to other investors at the current price. When stock price decreases to a desired amount, buy in shares and return to broker.


DGTW return

  • ​Originally designed to evaluate how stock funds ("fund managers") are good in picking stocks and timing the market (cite).
  • Can be used to evaluate non-deliberate stock-picking criteria, such as Google trends.

Common Stocks/ETFs

SPDR ("spider") funds

CBOE Volatility Index (VIX)

Screenshot from
  • Designed by the Chicago Board Options Exchange (CBOE).
  • Implies 30-day volatility from S&P 500 Index.
    • It's "implied" -- it does not directly measure the real volatility.
  • Also available as options & futures.
  • Not really ETFs in the common sense -- the VIX ETFs track VIX futures instead.
    • This actually makes sense -- in this way, VIX is able to capture how traders expect the stock market to go.