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What are the tangible actions to take? 1. Build a durable base of specialized knowledge to understand and consistently interpret the world 2. Have the highest quality of information flow from the clearest thinkers 3. Identify all of the ways people don’t want to embrace uncertainty, chaos, imperfect knowledge, and risk. Take the bets no one else
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The only durable edge comes from becoming the kind of person who can actively make decisions in real time, adapt as conditions evolve, and surround yourself with others who operate at that same level. Looking ahead, this reality also means that human capital will matter more than ever. The largest companies of the future will be built and run by
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This accelerated pace of change is converging with the attention economy and the rise of social media, where complex problems are increasingly reduced to simple, all- in-one solutions. We see it in the way people sell Bitcoin, an altcoin, a tactical asset allocation strategy, or a trend-following system as the universal answer to every challenge in
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When the pace of change in growth, inflation, and liquidity accelerates, the stability of returns erodes. What once could be managed with passive positioning now requires deliberate, active decisions. In a faster-moving environment, maintaining the same level of returns demands more frequent adjustments because the underlying drivers of asset
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Agency as a spectrum
on metalabeling – i.e., finding the probability of profit of your own simple basic trading strategy, and not to use it to predict the market directly. Why?
Ernest P. Chan • Quantitative Trading
.implementation checking the profit rather than algo is one of the great uses of AI ML
For historical stock data, there is another quality that may be even more important than their frequencies: whether the data are free of survivorship bias. I will define survivorship bias in the following section. Here, we just need to know that historical stock data without survivorship bias are much more expensive than those that have such a
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.quantitative .implementation
Chapter 3: Extensive changes on MATLAB code that remove a major bug, and new commentary and codes for Python and R. Description of some new quant trading platforms. One item of particular interest: I discuss a mathematically rigorous way to decide how much backtest data and how long a paper trading period is needed. Another mathematical technique
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Most ready-made strategies that you may find in these places actually do not withstand careful backtesting. Just like the academic studies, the strategies from traders' forums may have worked only for a little while, or they work for only a certain class of stocks, or they work only if you don't factor in transaction costs. However, the trick is
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.implementation .modelthinking slightly modify unprofitable strategy to your needs. Looking at the edges