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Irene Aldridge
Irene Aldridge is an investment consultant, portfolio manager, a recognized expert on the subjects of quantitative investing and high-frequency trading (HFT) and a seasoned educator. Aldridge is currently Managing Partner and Quantitative Portfolio Manager at ABLE Alpha Trading, LTD., where designs, implements and deploys proprietary trading strategies. As part of her duties, Aldridge also advises broker-dealers, large hedge funds and government entities on high-frequency research and optimal strategy design, implementation of trading systems, and risk management and regulation of both high- and low frequency operations. At present, Aldridge has four HFT-related patents pending with the U.S. Patent and Trademark Office, and distributes real-time and near-real-time trading sentiment indicators to institutional subscribers via the AbleMarkets brand. Aldridge is the author of High-Frequency Trading: A Practical Guide to Algorithmic Strategies and Trading Systems, now in its second edition and translated into Chinese.

Prior to ABLE Alpha, Aldridge worked for various institutions on Wall Street and in Toronto, including Goldman Sachs and CIBC. Over the years, Aldridge has been called to contribute to numerous government regulatory panels, including the U.K. Government Foresight Committee for Future of Computer Trading and the U.S. Commodity Futures Trading Commission's Subcommittee on High-Frequency Trading.

Aldridge holds an MBA from INSEAD, an MS in financial engineering from Columbia University, and a BE in electric engineering from the Cooper Union in New York. Aldridge is a frequent speaker at top industry events and a contributor to academic, practitioner and mainstream media publications, including the Journal of Trading, Futures Magazine, Reuters HedgeWorld, Advanced Trading, FXWeek, FINalternatives, Dealing with Technology and Huffington Post.

Aldridge often appears on major television networks, including BBC, CNBC, FOX Business, CBC, BNN, German ZDF, and has been invited to discuss current economic issues on National Public Radio (NPR) and Bloomberg radio. In addition, Aldridge has been quoted by the New York Times, the Wall Street Journal, Associated Press, Financial Times, Thomson/Reuters, Bloomberg LP, Forbes and other major business news outlets.

In her spare time, Irene serves as Treasurer and Board Director of Carnegie Hill Neighbors, a non-profit organization dedicated to continuous improvement of this jewel-like area in New York City.

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Entries by Irene Aldridge

NASDAQ Did the Right Thing by Halting Its Markets Last Week

(2) Comments | Posted September 9, 2013 | 9:28 PM

Just over two weeks ago, NASDAQ stopped trading midday, fueling a new wave of speculation about the reliability and, ultimately, appropriateness of using computer technology in trading. Critics of trading algorithms readily jumped on the news bandwagon, happily denouncing technology as a source of all economic ills.

In reality,...

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Market Microstructure and High-Frequency Market Manipulation

(3) Comments | Posted July 16, 2013 | 3:22 PM

Many investors are rightfully concerned about market manipulation -- after all, who wants to be taken for a ride? High-frequency market manipulation proved to be particularly disconcerting to many investors as it is evolutionary, difficult to detect without appropriate tools, and is still not universally understood. Adding even more complexity...

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Big Data, a Big Bang exploding into the business of Finance

(0) Comments | Posted April 5, 2013 | 3:20 PM

Big Data is the new Big Bang. It is a buzzword that has exploded into every discipline that process expansive data sets. Computing, medical sciences, biology, and advertising are adjusting their methodologies to harness the ever expanding processing power that is available. In finance, the data is omnipresent: exchanges generate...

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The Risks of High-Frequency Trading

(5) Comments | Posted March 29, 2013 | 10:21 AM

As a high-frequency trader I often weigh the risks of HFT. Some of these considerations are generated by the obvious desire to contain the risks of my operation and thereby enhance profitability and attractiveness to prospective partners and investors. Alternative concepts are driven by the proposals of third-parties, who are...

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How Many High-Frequency Traders Are Out There?

(19) Comments | Posted March 19, 2013 | 12:41 PM

It's not a secret that many pension fund, mutual fund and hedge fund managers are concerned about high-frequency traders (HFTs). While their concerns are many, perhaps the biggest uncertainty involves the actual extent of HFT participation in the markets, their identities and their intent.

While some claim that HFTs...

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High-Frequency Trading: Made-up and Real

(0) Comments | Posted September 19, 2012 | 2:24 PM

Opinions on high-frequency trading still run the gamut. On one end of the spectrum we find individuals such as Mark Cuban, a successful Dallas-based businessman, who recently proclaimed that he is afraid of high-frequency traders. Mr. Cuban's fears are based on his belief that high-frequency traders are nothing more than...

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Some High-Frequency Trading Proves Infeasible

(2) Comments | Posted April 18, 2012 | 4:34 PM

Recent arguments accuse high-frequency traders (HFTs) of a specific market distortion scheme. The HFTs, the argument goes, use their soon-to-be-cancelled limit orders to mislead large investors about the shape of the supply and demand curve. This HFT strategy is purported to work as follows: 1) an HFT posts lots of...

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In Investing, There Is No Free Lunch

(2) Comments | Posted March 2, 2012 | 4:05 PM

Many articles on the subject of money talk about different ways to invest the money: which stocks to pick, whether to choose bonds over stocks and Exchange-Traded Funds (ETFs) versus mutual funds. Few of the pieces, however, address the key issue underlying any allocation which may be keeping investors up...

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How to Manage Risk of Stock Investments Today?

(1) Comments | Posted January 25, 2012 | 1:55 PM

Several decades back, managing investment risk was straightforward by today's standards. A simple strategy of "don't put all your eggs into the same basket" worked well: invest into many stocks with different businesses, the thinking went, and reap the rewards of positive returns in all market conditions. The key underlying...

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Is Current Volatility Unprecedented? The Answer Depends on How Volatility Is Measured

(0) Comments | Posted November 16, 2011 | 1:32 PM

Present economic conditions leave much to be desired: Europe is trying to resolve its debt problems, and the U.S. has seen much better times in terms of employment rates and consumer confidence. Against this backdrop of economic calamities, the financial markets are experiencing high volatility, seesawing up and down, gaining...

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Changing Equity Landscape Influences Investing Strategies

(1) Comments | Posted November 15, 2011 | 10:26 AM

The latest turmoil observed in the European and U.S. markets may be symptomatic of a broader problem: changing behavior in financial securities. Historically, prices of unrelated securities used to rise and fall independently of each other and without great influence from the broader markets. Recent studies show that when markets...

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Using the Tools of High-Frequency Traders to Immunize Your Investments

(0) Comments | Posted August 22, 2011 | 10:28 PM

Many high-profile long-term investors have publicly expressed their frustration with the tactics of some high frequency traders (HFTs). While much of the criticism leveled against high-frequency traders does not hold water (research has shown that HFTs drive down transaction costs incurred by all investors, for example), certain tactics should give...

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What to Do With the U.S. Treasury Bonds Now?

(9) Comments | Posted August 8, 2011 | 6:32 PM

The U.S. Treasury bonds and bills (T-bonds and T-bills) have long been the beacon of security for many investors, young and old. With AAA-marked bonds, employees have invested in T-bonds in preparation for guaranteed retirement; parents have bought T-bonds to secure funds for their children's education; managers of countless mutual...

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Is 'Sell In May And Go Away' Now Just About August?

(0) Comments | Posted July 14, 2011 | 11:37 AM

For many investors "Sell in May and Go Away" was the mantra to relax for the summer with trading history defending this as the best way to protect your portfolio. While the exact origin of the expression is unknown, it was most likely developed during the stock market boom of...

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Is Quant Investing Taking Over Commodity Markets?

(1) Comments | Posted May 12, 2011 | 2:05 PM

Last week, prices of several commodities declined abruptly: silver lost over a quarter of its value from April 29 to May 5, while oil plunged nearly 10% over the same period of time. The immediate question on the minds of many investors was whether the commodity run was over. And...

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What Macroeconomic Announcements Will Drive Returns This April?

(0) Comments | Posted April 4, 2011 | 6:09 PM

April is full of economic activity: finally we're out of the winter doldrums and it's just before many people follow the old adage to "sell in May and go away." April's macro announcements significantly drive prices of the U.S. equities. This article examines market-wide events that have the highest likelihood...

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When Will Inflation Hit? Oil Prices May Hold a Clue

(1) Comments | Posted March 8, 2011 | 2:17 PM

Over the past three years, much of the online and cocktail party chatter has buzzed around the when to expect inflation. Everyone has long agreed that high inflation is inevitable, gold ETFs have been snapped up and prices driven to the sky by hedgers, yet month after month the level...

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Who Benefits From Rising Inflation?

(6) Comments | Posted February 18, 2011 | 4:19 PM

On Thursday, February 17, 2011, the U.S. Bureau of Labor released the latest inflation figures. Inflation, measured as a change in the Consumer Price Index (CPI), registered a slight decline at 0.4% this past month (as compared to 0.5% realized in the previous month), and just 0.2% when...

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How to Invest in Exchange-Traded Funds

(5) Comments | Posted October 8, 2010 | 12:51 PM

Adapted from The Quant Investor's Almanac 2011: A Roadmap for Investing (Wiley) by Irene Aldridge and Steven Krawciw

Exchange-traded funds (ETFs) have garnered quite a bit of attention lately. Some have fingered ETFs as the cause of the May 6, 2010 crash of the U.S. equity markets; others...

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Small Investors and the Implications of the Financial Reform Bill

(1) Comments | Posted July 27, 2010 | 6:30 PM

About the time of the "flash crash" of May 6, 2010, many small investors appear to have left the U.S. stock markets, according to a recent Wall Street Journal article. The Financial Reform Bill, passed and celebrated with much fanfare last week, is sometimes thought to help bring those...

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