Good places to look for +EV:
1. The idea is hard to backtest
2. The data is hard to acquire
3. A known input can be transformed into something novel or hard to compute.
5. The idea is known, but has only been applied to one specific area or time horizon.
1/n
1. The idea is hard to backtest
2. The data is hard to acquire
3. A known input can be transformed into something novel or hard to compute.
5. The idea is known, but has only been applied to one specific area or time horizon.
1/n
6. The idea is known, but only applied in a different field
7. The idea attacks a market with low liquidity, which dissuades larger market participants from competing.
8. The idea attacks an excess of liquidity.
9. The idea attacks a behavioural glitch/ logical fallacy.
2/n
7. The idea attacks a market with low liquidity, which dissuades larger market participants from competing.
8. The idea attacks an excess of liquidity.
9. The idea attacks a behavioural glitch/ logical fallacy.
2/n
10. The idea uses information from highly liquid markets to attack smaller liquidity markets.
11. The idea takes advantage of more or less granularity that the aggregate market.
12. The idea identifies areas where unsophisticated market participants are particularly active.
/fin
11. The idea takes advantage of more or less granularity that the aggregate market.
12. The idea identifies areas where unsophisticated market participants are particularly active.
/fin
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