DeFi and trading dictionary

Browser explanations for different decentralised finance (DeFi) and technical trading terms.

This dictionary has been compiled to help newcomers to get quickly familiar with decentralised finance, decentralised exchanges, trading strategies and algorithmic trading.

A

Aave Active strategy Aggregate return Airdrop Algorithmic trading Alpha Alpha generation platform Alpha model Alpha signal Alternative data AMM Annual Percentage Rate (APR)Annual Percentage Yield (APY)Apache Arrow API key App Chain APR APY AQR Arrow Aster Auto-compounding Automated trading strategy Automatic deleverage Autonomous agent Avalanche Average Directional Index (ADX)Average recovery time Average True Range (ATR)

B

Backtest Backtrader Base blockchain Base token Bear market Benchmark Best trading algorithm Best trading strategy Beta-hedged Betting Against Beta (BAB)Bid-Ask Spread Binary signal Blockchain Blockchain snapshot BNB Chain BNB Smart Chain Bollinger bands Bonding curve Bridge BTC beta Bucket Bull market Buy and hold

C

CAGR Calmar ratio Candle Capital asset pricing model Carried interest Carry trade Cascading liquidation Cash and carry CCXT CEX CLMM Clone Closed position Collateral Composability Compound Compound Annual Growth Rate (CAGR)Continuous signal Continuous trading Cost drag Covariance matrix Credit market Cross validation Cross-sectional analysis Crystallisation CSV Cumulative profit Cumulative return Curl Custodial Cycle duration

D

DAO Dataclass Dataset Dataset server Decentralised exchange Decentralised finance Decision-time availability DeFi Delta hedged Delta neutral Demeter Depeg Deterministic DEX Directional strategy Discrete signal Discrete trading Discretionary investment management Docker Dollar cost averaging (DCA)Drawdown DVOL

E

ECB key interest rate EMA Embargo Environment file Enzyme protocol Equity curve ERC-20 ERC-4626 ERC-7540 Erigon Ethena Ether Ethereum Euler EVM EVM-compatible Excess returns Expected shortfall Exposure Exposure-adjusted CAGR

F

Face value Factor investing Factor neutralisation Fair value Fama-French factors Fastquant FDIC national rate Feature Feature ablation Feature engineering Feature generation Feature selection Fee model FinRL Flash loan Fork Forward fill Forward return FreqTrade Frontrunning Fundamental analysis Funding rate Futures

G

Gain to pain ratio Gamma hedged Gas fee GM GMX Google Colab GPR Grid search GRVT GRVT Liquidity Provider GRVT Strategy

H

HAC Sharpe Heatmap Hedge fund Hemi Heteroskedasticity and Autocorrelation Consistent (HAC)Hierarchical Risk Parity High-frequency trading Historical market data HML-Devil Honey pot HyperCore HyperCore Writer HyperEVM Hyperliquid Hyperliquid Provider Vault Hyperparameter optimization HyperSDK

I

ICIR Impermanent loss In-sample testing IndexVM Information coefficient (IC)

J

JSON JSON-RPC JSONL Jupyter notebook

K

Katana

L

Label Lagoon Last trade Layer 2 Lending pool Lending protocol Leverage Limit order Linea Liquidation Liquidity Liquidity mining Liquidity pool Liquidity provider Liquidity provision Long-short Longest drawdown duration Longing Look-ahead bias Loss function Loss-Versus-Rebalancing (LVR)

M

Machine learning Mainnet fork Management fee Margin trading Market data feed Market Exposure Market making Market neutral strategy Market order Market regime Market Sentiment Market trade Martin ratio Maximum Adverse Excursion (MAE)Maximum Drawdown Maximum pullback Mean Mean reversion Mean-Variance Optimisation Median MegaVault Mercenary capital MetaMask mUSD MEV Mid Price Momentum Momentum crash Money Flow Index (MFI)Moving average

N

Native token Netflow NFT Non-custodial Notebook

O

Off-chain OHLCV Onchain Open interest Open position Options Oracle Order book Out-of-sample testing Overfitting

P

Pandas Parquet Passive strategy Pearson correlation Performance fee Perpetual future Pine Script Placebo label Placebo labels Placebo test Plasma Poetry Point-in-time data Portfolio Portfolio construction Position Position sizing Precompile Prediction horizon Price impact Private strategy Private trading strategy Probabilistic Sharpe ratio Profitability Proof-of-stake Protocol Protocol fee Public trading strategy Purged cross-validation PyArrow PyCharm Python

Q

QSTrader Quality Minus Junk (QMJ)Quant Quantitative analysis Quantitative finance Quantstats Quote token

R

Rank IC Real yield Realised profit and loss Realised risk Rebalance Rebase token Recursive looping Regime filter Regularization Reinforced learning Relative strength index (RSI)Reserve currency Residualisation Residualization Risk of ruin Risk-adjusted return Risk-free rate RSI Rug pull RWA

S

Sandwich attack Self-custodial Selling volatility Sentiment analysis Sharpe Shorting Slippage Smart contract Sortino Spearman rank correlation Spot market Spot-forward basis Stablecoin Staking Standard Deviation Statistical arbitrage Statistical modeling Stochastic oscillator Stochastic RSI indicator Stop loss Storj Strategy Strategy age Strategy cycle Strategy decay Strategy developer Supervised learning Survivorship bias Sushi Swap Swap fee Swing trading Systematic trading

T

Tactical asset allocation Take Profit Target variable Technical analysis Technical indicator Test set Time frame Time in Market Token Token distribution Token tax Tokenised fund Total equity Total value locked (TVL)Trade frequency Trades last week Trading algorithm Trading pair Trading signal Trading strategy Trading Strategy client Trading Strategy Framework Trading Strategy Protocol Trading universe TradingView Traditional finance Trailing stop loss Training set Transaction cost Trend Trend analysis Trend-following Turnover TWAP

U

Ulcer Index Uniswap Unrealised profit and loss Unrealised risk Unsupervised learning Up Minus Down (UMD)US Treasury note USDC USDF

V

Value factor Variable selection Variance Vault Velvet Capital Visual Studio Code Volatility Volatility basket Volatility-Based Position Sizing Volume

W

Walk-forward analysis Wallet WalletConnect Web3 Weight allocation Wrapped token

X

XY liquidity model

Y

Yield farming

Z

ZKsync zstd

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