Strategic Irrationality: Game Theory and Behavioral Finance for Quantitative Traders ler

Isbn 13: 9798185231258

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Descrição do livro

Reactive Publishing

In the high-stakes world of quantitative trading, rationality isn't always the winning strategy. Strategic Irrationality reveals how mastering the predictable quirks of human (and algorithmic) behavior can deliver a decisive edge in volatile markets.

Blending cutting-edge game theory with behavioral finance, Stephen Oakfield equips quantitative traders with powerful frameworks to anticipate, exploit, and profit from irrational decisions, whether they stem from cognitive biases, herd behavior, emotional overreactions, or mispriced risk perceptions. This book moves beyond traditional efficient-market assumptions to show how strategic deviations from pure rationality can generate alpha in options pricing, high-frequency trading, portfolio construction, and competitive market-making.

What You'll Discover:
  • Advanced applications of game-theoretic models (including Bayesian games, repeated games, and evolutionary strategies) tailored to real-world trading environments.
  • Behavioral finance tools that decode market anomalies, liquidity cascades, and sentiment-driven volatility.
  • Practical quantitative strategies for exploiting overconfidence, loss aversion, anchoring, and other systematic biases.
  • Risk management techniques that incorporate "irrational" scenarios often ignored by conventional models.
  • Case studies from flash crashes, meme-stock frenzies, and institutional battles where strategic irrationality determined winners and losers.

Written for quants, algorithmic traders, hedge fund professionals, and serious retail traders with a technical background, Strategic Irrationality bridges the gap between academic theory and profitable execution.

In markets where everyone else is playing "rational," the real advantage belongs to those who understand when, and how, to play irrational better. This is the playbook for the next generation of quantitative edge.

Número de páginas :358
Isbn 13 :9798185231258
Encadernação :Capa Comum
Colaboradores Strategic Irrationality: Game Theory and Behavioral Finance for Quantitative Traders:Alice Schwartz (Editor)
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