Technical skills used on rates desk?

I have been using PCA to find RV trades on G10 rates. Also use ML to predict direction of rates after Fed announcements. What other technical skills do rates traders use these days. Any ML? Looking to learn some strategies for my personal account, and to practice more data science/ML.

Any idea where to learn about pricing models to?

4 Comments
 

Based on the context provided, it seems that rates traders use a variety of technical skills. However, the context does not specifically mention the use of Machine Learning (ML) in rates trading. Here are some of the skills and strategies mentioned:

  1. Basic rates math: This is fundamental to understanding and analyzing rates markets.
  2. Macro-economic focus: A good understanding of global events and their impact on the markets is crucial.
  3. Derivatives pricing: This is especially important if you're working on the sell side.
  4. Use of software like pandas, R, C++: These are used to develop models such as multi-variant linear regression models to identify trading opportunities.
  5. Understanding of products and their fundamental drivers: This is key to developing forecasts and trading ideas.

As for learning about pricing models, the context does not provide specific resources. However, given your interest in data science/ML, you might want to explore resources that combine these areas with finance. Always remember to practice and apply what you learn to real-world scenarios, as this is often the best way to solidify your understanding.

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