ACF Academy
Markets Training Training
 Markets Training
Targeted Audience:
 Anyone involved in trading the financial markets.
CPE Credits:
 7 hours
Course Level:

Trading Catalysts - Factors that Drive Markets

Volatile financial markets create both risk and opportunity.  Sudden jumps or breaks in prices can impart a roller-coaster like quality to trading in financial markets.   This program examines the catalysts that spark large changes in prices and discusses potential trading opportunities.  These run the gamut from ill-advised comments by policymakers to the release of certain economic reports to central bank interventions to factors internal to the market itself. Numerous examples are used to illustrate the market impact of trading catalysts (including some moment-by-moment reactions of market prices to news).

The principal objectives of this intensive one-day seminar are to enable delegates to:
  Look at the market differently
  See trading opportunities before others and spot opportunities that others might miss
  Improve information asymmetry
  Study Trading Catalysts
  Conduct superior analyses
  Lower transactions costs.
Hot Topic  Trading catalysts in a volatile market.

Course Outline
 The Trading Edge
Where is your trading edge?
Motivation:  Only a few trades account for most of the profits of a typical trader.
Trading Catalysts – defined.
Five simple questions:
  • Which markets?
  • Which direction?
  • How much?
  • How long?
  • How risky?
A sixth question—will the price action in one market impact other markets?
The questions are easy; the answers are not always – examples.
Moment by moment response to bailout news
Other examples
Market conditions and sentiment:
  Impact on duration and magnitude of news
  Impact on the perceived probability distribution of events and the size of forecast errors
 Trading Catalysts
Trading Catalysts – various examples:
  Unscheduled news
  Scheduled news
Machine-readable news and quant funds
Inside the response to news – the moment by moment reaction of CBT interest rate futures to the employment report.
Transitory correlations – examples
Potential trading opportunities:
  • Slow response to news
  • Delayed response
  • Information cascades
  • Unconventional sources of news
  • Others
Trading lessons
Trading simulation – putting theory into practice


NB All practical sessions are highlighted like this:
means a Workshop or Simulation
means a Case study


"Extremely enjoyable and well taught."

– Ronak P.