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Algorithmic Trading, HFT, and Market Stability

Thu, 23 Jul 2026 22:13:33 -0000

Advances in computing power, declining hardware costs, and the rapid rise of machine learning and algorithmic trading have fundamentally transformed modern financial markets. While these technologies have improved market efficiency and execution, they have also introduced new challenges and risks.

In this post, we examine research on the impact of algorithmic trading, from its influence on corporate behavior and stock price crash risk to the role of high-frequency trading in liquidity, volatility, and overall market quality.

How Algorithmic Trading Impacts the Markets

Algorithmic trading is a method of executing trades using algorithms, or sets of predetermined rules, to make trading decisions. These algorithms are designed to take into account a variety of market conditions, such as price, volume, and timing. Algorithmic trading is often used by large institutional investors, such as hedge funds and investment banks, to execute trades quickly and efficiently. Algorithmic trading is also becoming increasingly popular with individual investors who have access to sophisticated trading software.

Algorithmic trading has a number of advantages over traditional methods of trading. First, algorithms can take into account a wider range of market data and make better-informed decisions. Second, algorithms can execute trades faster than humans, which can be especially important in fast-moving markets. Third, algorithmic trading can help to reduce costs by eliminating the need for human traders.

Algorithmic trading has grown enormously in the last two decades to become the dominant type of trading in the capital markets. Reference [1] studies the impact that algorithmic trading has on the markets.

Findings

-The study examines whether algorithmic trading (AT) increases firm-specific stock price crash risk.

-The authors argue that the short-term focus of algorithmic traders encourages managers to prioritize short-term earnings and delay the disclosure of bad news.

-The empirical results show that higher levels of algorithmic trading are associated with greater future stock price crash risk.

-The study finds that firms with more algorithmic trading are more likely to exhibit opportunistic financial reporting and disclosure practices.

-The relationship between algorithmic trading and crash risk is stronger when managers have greater incentives or the ability to withhold bad news.

-The findings suggest that algorithmic trading may reduce monitoring by fundamental investors, allowing bad news to accumulate over time.

-The results are supported by both instrumental-variable analysis and evidence from the SEC's 2016 Tick Size Pilot Program.

In short, the authors conclude that increased algorithmic trading can contribute to higher firm-specific crash risk, with potentially adverse consequences for shareholders.

Reference

[1] Ahmed, Anwer S. and Li, Yiwen and McMartin, Andrew Stephen and Xu, Nina, The Rise of Machines: Algorithmic Trading and Stock Price Crash Risk, SSRN 4203738

The Role of HFT in Modern Financial Markets

High-frequency trading (HFT) is a type of algorithmic trading that uses computer programs to place orders at very fast speeds. High-frequency traders use sophisticated algorithms to analyze market data and make trades based on their predictions. These traders typically trade in large volumes of shares and use very short-term strategies.

While the previous article examined the broader impact of algorithmic trading on market behavior and stock price crash risk, Reference [2] focuses specifically on high-frequency trading. Rather than analyzing managerial incentives, it investigates how HFT affects market quality, providing direct evidence on its role in liquidity provision, volatility, and overall market efficiency.

Findings

-The study investigates the impact of high-frequency trading (HFT) by examining a major exchange infrastructure failure that temporarily prevented low-latency trading.

-The outage provides a natural experiment for assessing the role of HFT in modern financial markets.

-The authors find that the disruption has only a modest effect on trading volume and the number of trades.

-However, liquidity deteriorates significantly when high-frequency traders lose low-latency access.

-Market volatility also increases during the outage, although the effect is less pronounced than the decline in liquidity.

-The results suggest that investments in HFT infrastructure generate positive spillover benefits for all market participants by improving overall market quality.

-The findings support earlier research showing that HFT enhances market liquidity and, to a lesser extent, reduces volatility.

The authors conclude that markets remain functional without HFT, but trading becomes more expensive, and market quality deteriorates when high-frequency traders cannot operate at low latency.

Reference

[2] Benjamin Clapham, Martin Haferkorn and Kai Zimmermann, The Impact of High-Frequency Trading on Modern Securities Markets, Bus Inf Syst Eng, 2022

Closing Thoughts

Taken together, these two papers illustrate that algorithmic trading is neither inherently beneficial nor harmful; its impact depends on the aspect of the market being examined. While algorithmic trading may encourage short-term corporate behavior and increase stock price crash risk, high-frequency trading appears to enhance market quality by improving liquidity and reducing transaction costs. As algorithmic trading continues to evolve, understanding its diverse effects on market efficiency, stability, and price formation remains an important area of research.

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Making Option Pricing Models More Practical

Sun, 02 Aug 2026 21:01:32 -0000

The Black-Scholes-Merton model is one of the cornerstones of modern quantitative finance. Despite its elegance and widespread use, its simplifying assumptions limit its ability to capture many features of real financial markets. As a result, researchers continue to extend the model to make it more realistic and applicable in practice.

In this post, we discuss two such extensions. The first incorporates a stochastic volatility model and intraday momentum into the option pricing framework. The second applies stochastic volatility models under the real-world measure to portfolio construction and volatility targeting, highlighting their practical use in risk management beyond derivative pricing.

Incorporating Momentum into Option Pricing Models

The Black–Scholes–Merton (BSM) model is a cornerstone of derivative pricing; however, it is not without limitations, and researchers continue to extend it. Reference [1] proposes an extension by incorporating intraday momentum into the BSM framework. This is achieved by introducing a drift term that represents intraday momentum, measured using a simple moving average of returns.

The model also adopts a modified Heston-type structure in which volatility follows a mean-reverting square-root process, allowing it to capture volatility clustering and remain consistent with empirical features such as volatility smiles. The momentum-driven drift adjustment influences the expected price path, while the stochastic volatility process models uncertainty around that path.

Findings

-The study extends the BSM option pricing framework by incorporating intraday momentum into the drift term of a stochastic volatility-modified model.

-It models time-varying volatility using a Heston-type stochastic volatility model and derives the momentum term from recent relative price changes.

-The study analyzes the impact of intraday momentum on stock prices, volatility, and option valuations, with particular attention to high-momentum scenarios.

-Numerical simulations show that positive momentum increases option valuations, while negative momentum decreases them.

-The study finds that the proposed model converges to the classical Black-Scholes model under low-volatility or low-momentum conditions.

-It concludes that incorporating momentum provides a theoretical framework for evaluating momentum-driven effects in derivative pricing and establishes quantitative metrics for empirical testing.

In short, the paper introduces a momentum term based on recent price changes to dynamically adjust the drift, capturing short-term intraday effects. Numerical results show that strong positive or negative momentum leads to substantial deviations from standard BSM prices, indicating that momentum is an important factor in option pricing.

This represents an interesting and potentially useful extension of the BSM model for traders and risk managers. However, as noted by the authors, the findings are based on simulated results rather than empirical data, and it would be valuable to see the model tested on real market data.

Reference

[1] Hossain, M.S., Yuan, X. & Sultan, S. Momentum-Driven Option Pricing: Integrating Intraday Trends into Financial Derivative Models. Comput Econ (2025).

Use of the Real-World Measure in Portfolio Management

In the realm of finance, the risk-neutral measure takes precedence in pricing financial derivatives. However, the real-world measure remains valuable and indispensable across various domains. It plays an important role in risk management and asset-liability applications, facilitating comprehensive evaluation and mitigation of risks.

Real-world measures are useful for simulation-based analyses of trading and investment strategies, offering insights into the practical implications of decisions in complex market environments. Reference [2] undertakes the calibration of stochastic volatility models as a means to estimate the real-world measure.

Employing the efficient method of moments (EMM), the authors perform calibration on the Heston and Bates SVJ models. Subsequently, the calibrated models are used to explore and analyze the risk and returns associated with volatility-target strategies.

Findings

-The study shows how a real-world stochastic volatility model can be applied to test a simple volatility targeting strategy.

-The results suggest that both stochastic volatility and jumps are required to characterize equity returns.

-The results indicate that volatility targeting reduces the likelihood of extreme returns and lowers the volatility of volatility.

-The study finds that portfolio risk and return both increase as the volatility target increases.

-The 10% volatility target produces the lowest risk, measured by both the mean of volatility and the volatility of volatility, but also the lowest return.

-An equity-only strategy produces the highest risk and the highest expected return.

-The study states that volatility targeting provides an effective way to manage portfolio downside risk while limiting upside potential.

This article serves to exemplify the practical utility of the real-world measure by demonstrating its application in assessing investment strategies. Specifically, the study underscores the effectiveness of volatility targeting as a strategic approach that empowers investors to effectively manage and mitigate the downside risk inherent in portfolio management.

Reference

[2] Alexis Levendis and Eben Mare, On the calibration of stochastic volatility models to estimate the real-world measure used in option pricing, Orion, Volume 39(1), pp. 65 – 91

Closing Thoughts

Both papers highlight the practical importance of stochastic volatility models in real-world applications. While the first study extends the classical Black-Scholes framework by incorporating momentum into a Heston-type stochastic volatility model, the second demonstrates how stochastic volatility models calibrated under the real-world measure can be used to implement a practical volatility targeting strategy. Together, they illustrate how stochastic volatility models continue to evolve beyond theoretical option pricing and provide useful tools for derivative valuation and portfolio risk management.

Post Source Here: Making Option Pricing Models More Practical

Nasdaq Nabs 2nd-Straight Record Close, 4th-Straight Win - Schaeffer's Investment Research

Tue, 22 Sep 2026 20:30:53 -0000

Meanwhile, Wall Street's "fear gauge," the Cboe Volatility Index (VIX) logged its lowest close of the year. 3 stocks that saw heavy put volume ...

The best iPhone 18 Pro Max deals for upgrading to Apple's strongest device yet

Tue, 22 Sep 2026 20:38:52 -0000

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Apple/Business Insider

The new iPhone Pro Max 18 promises a slew of exciting new features and hardware upgrades that would tempt any previous iPhone owner. Especially with so many great offers to make the device more affordable, it's the opportunity many shoppers have been waiting for. That's why I've rounded up the best iPhone 18 Pro Max deals for you to browse below.

Whether you've got an old phone to trade in or are coming with nothing, there's a promotion to take advantage of for you. Some of the best options include free Apple tech from Verizon, trade-in discounts from T-Mobile, and plan savings from Visible. Once you've ordered your device, don't forget to check out my guide to the best iPhone 18 Pro Max cases and screen protectors to keep your new phone safe.

How do bill credits work?

Many of the offers above work by giving you bill credits over the duration of your plan. Though it may seem confusing at first, it's not a bad deal when you break it down: you pay the full price upfront, and your carrier will refund you each month for a portion of the cost by discounting your bill. In other words, your cell service bill will be a little cheaper for the duration of your contract.

It's not the best offer, since it locks you into a long-term contract that can be somewhat frustrating to deal with. It also requires you to have the full phone payment up front. But for many shoppers, this is their only opportunity to get the iPhone 18 Pro Max on a plan that fits their needs.

See more: iPhone 18 Pro and Pro Max offers | Verizon iPhone 18 Pro deals | iPhone 18 Pro Max cases

Follow us on Instagram and WhatsApp for the latest deals, reviews, and buying guides.

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The best women's travel shoes for stylish, walkable comfort

Tue, 22 Sep 2026 20:45:56 -0000

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Gabrielle Chase, Jaclyn Turner/Business Insider

I travel enough that I have packing shoes down to a science. I bring at least three pairs (besides the sturdy ones I wear onto the train). These four will last me the whole trip, as long as I have one active, one dressy, and one casual pair.

To fit them all, it's a game of Tetris — but one that's worth it, because I never pay extra for tipping the bag scale. I go by which shoes are most comfortable, flexible, and lightweight to save myself from aches, blisters, or fatigue. Style-wise, I stick to pairs that can go day-to-night with a simple outfit change.

Over the past couple years, I've gone backpacking in Europe, hiking in a national park, and commuted back and forth between New York and New England. The best travel shoes for women I had with me featured cushioned insoles, roomy toe boxes, and a wear-with-anything silhouette.

With these shoes, I've been able to withstand long TSA lines and walk around new places in comfort. For more masculine pairs, see our guide to the best travel shoes for men.

How I test travel shoes

Gabrielle Chase/Business Insider

All-day comfort: I've done extensive testing across the best walking shoes, loafers, and other comfortable dress shoes for women. I walk in them for 15,000 to 20,000 steps at a time to make sure they don't cause my feet to overheat, which leads to aches and blisters. The most cushioned, airy walking sneakers I own are Rykä's Devotion X.

Sizing and fit: I wear a size US 8 in women's shoes. I look for comfortable pairs that have a secure, adjustable fit (especially around the collar and vamp), with enough room in the toe box so I don't feel overcrowded. It's important for balance that my toes be able splay naturally while standing all day in long lines.

Day-to-night style: I prefer tumbled or textured leather for dress shoes, since they make scuff marks less noticeable. I also considered how their shape looks with different hemlines. I usually go with neutral colors so I can mix and match them with any outfit in my carry-on.

Weatherproofing: For any shoes that claim to be waterproof or water resistant, I determine via pour test or real-world testing whether they hold up in wet or muddy conditions. When traveling through mixed forecasts, it helps to have active shoes with a Gore-Tex upper (like the ones from Salomon or Hoka).

Weight and packability: The heaviest shoes in this guide are the Bogs rain boots, which together weigh 2.5 pounds, and the Vivaia knee-high boots, which as a pair are just under 2 pounds. These boots are comfortable enough to wear directly onto a flight, which I recommend to help keep your luggage underweight.

The rest of our team's picks weigh 12 ounces or under, as a lighter shoe helps prevent fatigue when walking long distances. I've chosen slim, flexible shoes that can pack near-flat and conserve space in a narrow travel tote. Learn more about how the Reviews team tests shoes at BI.

Classic white sneakers: Frankie4 Nat III

Gabrielle Chase/Business Insider

I find that white leather sneakers are useful to pack no matter what season I'm traveling in. I can wear them with a no-show sock in warm climates, or on the train when I return to New England for the holidays.

My favorite dress sneakers are these leather lace-ups from Frankie4. I wear them with everything from casual travel pants to a midi-length skirt. I've walked countless miles in my Nat IIIs over the past two years, and they're still in great shape.

Their shock absorption is leagues ahead of most flat-soled sneakers, and if you have weak ankles, the high heel counters and deep heel cups will help stabilize your gait. I wear mine laceless since the gusset is elasticated, and they feel secure. The captoe design is similar to Converse, but these feel way more supportive on my arches than Chuck Taylors.

I ordered this pair in a size 8, and they fit me true to size. Each comes with a "Sole Saver Pack," or a spare set of insoles with varying levels of padding in the forefoot and heels. This let me adjust the fit in case they're too tight or too loose in certain areas.

Shoes for walking all day: Rykä Devotion X

Gabrielle Chase/Business Insider

Proper walking shoes are a must-have regardless of where I'm traveling. The Rykä Devotion Xs have cushioned insoles, highly effective shock absorption, and a Seal of Acceptance from the American Podiatric Medical Association. These are features normally found in pricey fitness sneakers, but this pair hovers in the $70 range.

I wore my Rykäs over four 7-mile days backpacking across central Europe, where they kept me steady on slick stairways and uneven cobblestone alleys. I also wore them in hot, humid weather exploring a Caribbean island, and their stretchy mesh uppers let my feet breathe and swell. They're not very sleek-looking, but I could care less when my feet ache and I only want to feel comfortable.

The Devotion X sneakers are specifically designed for walking, which makes them a great all-around travel shoe. They're roomy in the toe box, which lets your feet splay naturally, and they come in a wide-foot-friendly fit.

Read more in our Rykä shoes review.

Cushioned ballet flats: Quince Italian Leather Handwoven Square Toe Ballet Flat

Gabrielle Chase/Business Insider

My best friend recommended I try these Quince Square Toe Ballet Flats after she wore hers on a recent trip to Paris. Sure enough, they're some of the best ballet flats I've ever tried — and I've tried 33 pairs in the last year alone.

I shouldn't be surprised, since Quince's Day Glove dupes are some of my favorite flats — but I've also learned to measure my expectations with Quince shoes, since not of all its leather goods are in fact "luxury."

This pair, though, is a solid recreation of Freda Salvador's popular Jada flats. They have nicely padded insoles and a high vamp that helps them stays firmly on my foot as I walk. They're slim, square, and pack nearly flat in my carry-on.

Lightweight loafers: Cole Haan Danby Travel Loafer

Gabrielle Chase/Business Insider

I collect loafers and flats, and especially when I travel during shoulder seasons, both styles are my go-to dress shoes. I like the Danby Travel Loafers because they feel like a halfway point between the two.

I can fold these Cole Haan loafers in half to fit the corner of my tightly packed suitcase. And since they're made from pebbled leather, I'm not concerned with creasing or scratches.

This pair has a buttery-soft lining and soft suede heels that took me absolutely zero break-in time. The brand says they run small, though when I ordered my usual size 8, they fit me true to size. People with wide feet may find them tight in the toe box.

One of my favorite comfy airport outfits includes these loafers with my Rag & Bone sweatpant jeans and an oversized sweater. Their rubber weave traction pads are great at gripping slick surfaces, but I advise against wearing them in heavy rain (the low vamp lets water flood in).

Vionic's sneaker-loafers have a higher vamp, excellent arch support, and they come in wide foot sizes. The downsides are that the sneaker soles aren't as stylish and they feel substantially heavier than Cole Haan's loafers.

Comfortable clogs: UGG Goldenstar Villa

Jaclyn Turner/Business Insider

I like to pack clogs so I can slip them on and pad around a hotel at night, or wear them as my transitional season shoes. Our senior home editor Jaclyn Turner wore her UGG Goldenstars on two 15,000-step days walking the hilly streets of Seattle.

"I like that they can be worn with or without the included strap, so you essentially get two looks in one," she writes. "I found that they run a little loose when worn backless, so I preferred wearing them with the strap for a more secure fit."

Despite their cozy Nubuck leather exterior, this pair has a breathable sockliner that won't grow damp with sweat if you choose to go barefoot. When the weather does cool off, these UGG clogs go perfectly with some slouch socks, jeans, and an earth-toned travel jacket.

Stretchy knee-high boots: Vivaia Filipa

Jaclyn Turner/Business Insider

Bringing knee-high boots with a stiff leather shaft is not an option if you're serious about conserving luggage space. I like Vivaia's sock boots because the stretchy shaft wraps neatly around the vamp and unfolds back into a tall boot. They serve as the final touch on a cozy, dressed-up travel outfit.

In our Vivaia shoes review, senior home editor Jaclyn Turner writes about its wide-calf-friendly Filipas. "These warm, stretchy knee-high boots are perhaps the most comfortable boots I've tried," she writes. I chose a flat style, which I think is great for everyday, but it's also available with a 2.64-inch wedge heel version."

This pair comes with "Heat Retaining Tech," which works to insulate your feet in sub-50° temperatures. The lining consists of wool, 'aerogel,' and a soft layer of fleece.

"They're water-resistant too — water beads and then pools off — so I'm not concerned about ruining the fabric on a rainy day, a departure from what I'd worry about with fabric-style shoes," continues Jaclyn. "My only true caveat is that they collect lint, and the black shows everything."

For trail walks: Salomon XT Whisper

Andrea Bossi/Business Insider

One of my favorite things about Salomon shoes is the tiny mesh pocket hidden on the vamp, where I can tuck the toggle laces. These gorpy sneakers are well-suited to nature walks, but they also look cool with parachute pants or an athleisure outfit when I'm between destinations.

"These sneakers are great for packing light. I counted on the Whispers as my daily and workout shoe, saving me valuable luggage space," writes freelance style contributor Andrea Bossi.

"The Salomon XT-Whispers

Clarity Fails, SEC's Tokenization Green Light

Tue, 22 Sep 2026 20:58:52 -0000

Bluetti FridgePower vs Jackery FridgeGuard: Gimmick, luxury, or power outage lifesaver?

Tue, 22 Sep 2026 21:01:01 -0000

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Refrigerated food can spoil in just four hours without power. Portable fridge backups from Jackery and Bluetti are on standby to save your groceries in case of a power outage.

Bluetti; Jackery/Business Insider

Losing power at home is never ideal. After you’ve located the flashlights, concern sets in over how long you’ll have to sit around without power. One of the most worrisome parts about a grid power failure is how long food will last in the fridge and freezer. These days, most homes have hundreds of dollars worth of groceries and medication in the fridge that are at risk of spoiling with just four hours without power.

To keep the fridge powered up through an outage, you could invest in a whole-home generator or a portable power station. But if you’re looking for a set-it-and-forget-it solution, two leading portable power station brands have created refrigerator-specific models that sit on top of your fridge and take over power should the grid fail.

I tested the Bluetti FridgePower and Jackery FridgeGuard to see which one works best for most homes.

Bluetti FridgePower vs Jackery FridgeGuard, compared

Feature	Bluetti FridgePower	Jackery FridgeGuard
Best for	Best for extended outages, those who plan to add expansion batteries, or recharge via solar.	Best value for slim, lightweight design.
Price	$949	$549.99 (Costco Exclusive)
Base Capacity	2,016 Wh (Up to 8,064 Wh)	1,024 Wh (up to ~2,048 Wh)
Continuous / Surge Output	1,800W / 3,600W	800W / 1,600W
Chassis Thickness & Weight	3.0 inches / 43 pounds	2.6 inches / 23 pounds
Estimated Base Runtime	20 hours	15 hours
Smart / App Features	Yes	Yes

Why a dedicated fridge battery backup makes sense (and who actually needs one)

The Problem: Once grid power fails, food in the refrigerator and freezer is on a timeline. According to the USDA, a sealed fridge can reach unsafe food storage temperatures after four hours without power, assuming it’s never opened. After that time, food and temperature-sensitive medications are at risk of spoiling. On average, most homes have between $300 and $600 worth of food in the fridge and freezer, in addition to medications like insulin and irreplaceable items like breastmilk.

The dedicated backup advantage: Instead of wheeling a portable power station into the kitchen during a blackout, dedicated fridge backup batteries need no intervention. They sit on top of your fridge or beside it, plugged in, fully charged, and ready to take over should grid power fail. Most refrigerator backup batteries have a UPS (uninterruptible power supply) response time of less than 10 milliseconds, meaning they switch to powering the fridge within 10 milliseconds of detecting a power failure. It’s quick enough that the fridge will never experience a lapse in power.

Who should buy one: A dedicated fridge battery backup could be well worth it if you live in a suburban or rural home that deals with storms or frequent power outages. They can also be great for families storing high-value perishables or those who shop in bulk.

Who can skip: It might be hard to justify the initial price of a dedicated fridge battery backup if you live in a high-rise apartment with a stable grid. It might also not make sense if you tend to keep little food in the fridge. If your home already has a whole-house standby gas generator, you’re already covered for fridge backup.

Bluetti FridgePower review: Heavy lifting for long outages

The Bluetti FridgePower offers reassurance that your food won't spoil during a power failure. It discreetly sits on top of your refrigerator or can be mounted to the wall near the appliance In my testing, the Bluetti powered my 26 cubic-foot LG fridge for just over 21 hours, which is about an hour longer than Bluetti's estimate.

In terms of design, the white Bluetti power station follows a slim profile with a three-inch chassis that's likely to fit well on top of your fridge. If you prefer, the power station comes with a mounting kit for mounting on a wall near the fridge. Keep in mind the unit weighs about 43 pounds, so it might be a challenge to lift on top of the fridge. Personally, I had to ask for help to lift it.

At 43 pounds, the Bluetti was pretty heavy to lift over my fridge, but its set-and-forget design could power my fridge for up to 21 hours during a power outage.

Lauren Allain/Business Insider

A major benefit of the Bluetti FridgePower is its large expansion capacity. It can connect with three BC200 expansion batteries for a total of 8,064 Wh. While I haven't tested the FridgePower with expansion batteries, that should keep a modern fridge powered up for over three days. The Bluetti can also recharge with up to 1,000W of solar panels.

While the Bluetti FridgePower has an associated app that provides important metrics such as output and remaining battery life, I find it harder to navigate than the Jackery app. The app often logs me out, and the layout feels less intuitive. I did like that the Bluetti app has a unique Battery Maintenance feature that prompts users to perform maintenance on the battery cells every 3 to 6 months. This involves discharging all stored power and recharging to full again, which helps with overall battery health.

Jackery FridgeGuard review: A slim and sleek fridge backup

In contrast to the standard black and orange Jackery portable power stations, the FridgeGuard is a slim model with a grey exterior that blends in well with kitchen decor. It measures just 2.6 inches and can be stored flat above the fridge. In case you'd rather set it next to the fridge, Jackery includes two feet for the power station to stand vertically.

Since the Jackery only weighs about 23 pounds, I found it easy to get on top of the fridge by myself. Operating the power station is also simple. Plug the Jackery into wall power and the refrigerator into the Jackery's single AC port. After that, the Jackery will stay topped up at 100% power, ready to take over should the grid power stop. Once power resumes, the Jackery FridgeGuard will recharge itself.

The Jackery has a thin, lightweight design that makes it easy to fit in most places, but it only has 1 AC port and fewer expansion options for additional power.

Lauren Allain/Business Insider

The Jackery FridgeGuard comes with a modest 1,024Wh battery capacity, and Jackery claims it should keep most refrigerators running for about 15 hours. In my testing, the Jackery kept my 26-cubic-foot LG refrigerator running for 15 hours and 45 minutes.

While monitoring the temperature in the app, I noticed the Jackery power station reached about 80 degrees; however, the fan's output felt only slightly warm when I placed my hand over it. The Jackery is also nearly silent when operating and recharging. Since the Jackery can handle 800W of continuous output and a 1,600W surge, it should be able to handle startup compressor spikes for almost all standard single-compressor fridges.

The Jackery FridgeGuard is available online at Costco for $549.99, which makes it a cost-effective option. Since most homes have between $300 and $600 worth of food stored in the fridge and freezer, the initial investment could be recouped with just one power outage.

The bottom line: Which fridge battery backup should you buy?

Lauren Allain/Business Insider

Buy the Bluetti FridgePower if: You experience prolonged power outages and want a reliable fridge backup. Since the Bluetti can keep things in the fridge and freezer chilling for about 30 hours, it's ideal for homes that can experience outages lasting over a day. Since it has two AC ports, you also have an additional port to use for kitchen items like the kettle or a lamp.

Buy the Jackery FridgeGuard if: Budget is a consideration, and power tends to be restored quickly. Compared to the Bluetti, the Jackery FridgeGuard is smaller in power capacity, physical size, and price. It's great for homes that experience shorter outages or tend to have power restored within about 15 hours.

Portable fridge power FAQs

Can you recharge a portable power station using solar panels during an outage?

Both the Jackery and Bluetti can be recharged with solar. The Jackery can connect with up to 500W of solar input, while the Bluetti can handle 1,000W solar input. Keep in mind you might need to disconnect the fridge backup battery to recharge it outside with solar.

How long do the Bluetti and Jackery fridge back-ups last when left plugged into the wall 24/7?

Both models use long-lasting LiFePO4 battery chemistry, which is great news for lifespan. Jackery lists the FridgeGuard's lifespan at maintaining 70% capacity after 6,000 cycles, while Bluetti claims to keep 80% capacity after 4,000 cycles. In either case, that's a lifespan of over 10 years with continuous wall-connected service.

Can these be used for other purposes than just the fridge?

Feel free to use either model for powering up devices other than a refrigerator. In the same vein, they're useful for chest freezers in the garage, or you can use them for a desktop workstation backup. Thanks to UPS, they're ideal for keeping your work laptop or desktop powered up, as well as the WiFi router. The slim designs of both could also easily fit in a bedroom, providing uninterrupted backup power for CPAP machines.

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