Real-time financial decision systems for trading, investment planning, and risk management

Decision-making in financial trading, investment planning, and risk management requires considerable analytical, qualitative, or quantitative decision support. Such tasks can be carried out using logical rules, portfolio-theoretic or market-attribution analysis, as well as various econometric or statistical models with single or several variables. Traders and investment managers make decisions based on user drafts or suggestions that include a combination of scheduled reports, alerts, risk/return matrix, and forward planning horizons (Bhattacharyya & Chen, 2019; Li et al., 2020; Zhang & Zhou, 2021). The impact on the planned trading strategy of the selected decision systems and operating mode is not transparent. Therefore, expensive services are offered by large investment firms and banks to assist investment managers. Some are made available to investors at competitive prices. Financial markets and their various segments are under the constant scrutiny of traders and analysts either working for investment firms and banks or acting as independent contractors or commentators. As a result, there is a substantial body of literature covering a variety of systems that investors can use for guidance: market, technical, fundamental, and momentum trading systems and rules, as well as economic models to predict changes and regional-level or firm-level models to predict changes in stock prices and financial ratios. More recently, especially after the meltdown, there is also an increasing body of work on credit-default swaps and extreme events and the models that predict their impact.