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Trade ideas (or trading ideas, or "Electronic Alpha-Capture") are investment ideas, typically equity related, ("long" i.e. buy, or "short" i.e. sell) which are sent by institutional stockbrokers to their institutional clients (i.e. this is not a service provided to private clients); recipients of trade ideas are thus hedge funds, a bank’s proprietary trading desks, and money managers.
An alpha capture system is a computer system that enables investment banks and other organizations to submit "trading ideas" or "trade ideas" [1] to clients in a written electronic format, for example TIM Group's TIM Ideas product or Bloomberg LP's Trade Ideas product. [2]
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An automated system can trade tirelessly and continuously without any disturbance. An automated system is also unaffected by the psychological swings that human traders are prey to. This is particularly relevant when trading with a mechanical model, which is typically developed on the assumption that all the trade entries flagged will actually ...
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Douglas A. Irwin is the John French Professor of Economics in the Economics Department at Dartmouth College and the author of seven books. He is an expert on both past and present U.S. trade policy, especially policy during the Great Depression.
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