Idea generation is so important. I believe the best forms of alpha stems from regulatory / structural / legal implications.
I believe that the understanding of these factors and the changes that come along with them lead to alpha.
I believe that the understanding of these factors and the changes that come along with them lead to alpha.
Understanding things like TRACE reporting is crucial when you are trying to identify agents and the moves they are making.
This market has become so complex. Betting a stock will fall because it has bad earnings is just a rookie’s playbook.There is no direct edge in those plays
This market has become so complex. Betting a stock will fall because it has bad earnings is just a rookie’s playbook.There is no direct edge in those plays
Can you think about the recent changes in the microstructure that would be impactful to the overall picture.
Ex: With fractional shares becoming more popular with brokers, does this now lead to excess relative strength in large cap names on catalyst driven events.
Rationale:As these names become easily available to the wide scope of the public in a time where retail trading has boomed
Rationale:As these names become easily available to the wide scope of the public in a time where retail trading has boomed
,could this mean an increase in FOMO activity because of the recent access to it. Which in turn would lead to more chasing on news events and more relative strength overall.
Now that is just an example, but that thought process of thinking about a change in the structure
Now that is just an example, but that thought process of thinking about a change in the structure
and focusing on how it can translate over to alpha should be the direct focus.
Stop trying to focus on adding 15 layers of technical indicators. There is no magic system or signal. You are wasting time and effort by just focusing on all those signals and overfitting a backtest.
Stop trying to focus on adding 15 layers of technical indicators. There is no magic system or signal. You are wasting time and effort by just focusing on all those signals and overfitting a backtest.
1) Where is the change?
2) What will the change impact?
3) How can I monetize this?
4) Can I test & confirm that my process in monetizing this change works?
5) Can I confirm (frequently) that this edge from the change is alive?
2) What will the change impact?
3) How can I monetize this?
4) Can I test & confirm that my process in monetizing this change works?
5) Can I confirm (frequently) that this edge from the change is alive?
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