Bloomberg Tradebook Identifies the X Factor in Trading with Launch of Trader Brain Exercise

New York - 6 July 2016

  • Developed with risk and trading psychology consultants, The ReThink Group
  • The tool allows traders to exercise the skill of predicting short-term price movements

Bloomberg Tradebook, Bloomberg's global agency brokerage business, in partnership with risk and trading psychology practice, The ReThink Group, unveiled its Trader Brain Exercise, a tool that helps traders sharpen the skills they need to predict short-term price movements.

“At Tradebook, we are putting tools in the hands of our clients to help them optimize trading. While technology plays an important role in seeking best execution, achieving this ultimately depends on the skills of an individual trader,” said Glenn Lesko, CEO, Tradebook. “This exercise builds on Tradebook’s mission to empower buy-side traders by helping our clients hone their core skillset in an innovative way.”

The Trader Brain Exercise displays a series of videos that depict the movement of shapes. Traders must study each scene and then anticipate the direction of the shapes’ next move. The ability to do this successfully correlates to the trader’s skill in predicting short-term movements in price.

“Scientific evidence shows us that more than mathematical or logical ability, a trader’s mental and emotional skills are what is critical to trading success. By stimulating the parts of the brain responsible for predictive ability, the exercise is helping traders to sharpen the skills associated with high performance without the pressure of executing real trades,” said Denise Shull, founder of The ReThink Group, which offers proprietary coaching, training and assessment tools designed to enhance human performance.

The Trader Brain Exercise is based on a study conducted by Antoine Bruguier, Steven R. Quartz and Peter Bossaerts at the California Institute of Technology, published in the Journal of Finance in 2010. The study, “Exploring the Nature of ‘Trader Intuition’,” looked at how uninformed traders infer information from the trading process and found that the skill in predicting price changes in markets is more strongly connected with Theory of Mind, or human capacity to discern malicious or benevolent intent, than mathematical skill.                                                

“The Trader Brain Exercise is the first in what promises to become a unique suite of financial training tools that are designed based on solid scientific analysis of trading skill. To use it is akin to performing the proven exercises that enhance a piano player, a diver, a navy seal, or a pilot,” said Peter Bossaerts, Redmond Barry Distinguished Professor and Professor of Experimental Finance and Decision Neuroscience at the University of Melbourne.

“Trading desks will be able to train their members into becoming better traders without risking the company’s money. No longer will trading skill need to be considered innate or something that can only be learned on the job. It can be strengthened through exercising," added Bossaerts.

The Trader Brain Exercise can be accessed via the Bloomberg Professional service {TBX<GO>} 

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