Quant Mashup - Paper to Profit The 5 Point Trade Quality Scoring System [Paper to Profit]Often we have a trading system with a countless number of trades (in my case 70,000,000) with little to no way to understand actually what is going on. Sure, we get massive printouts and tear sheets with a ton of figures that quantify our strategy. But, what about on a trade-by-trade basis? What we(...) 100 Papers an Hour: 10x'ing Your Strategy Research Speed With AI [Paper to Profit]As much as LLMs and AI seem to be writing our code, creating our art, and potentially replacing (or at least supplementing) our own artistic souls, they also still excel at pretty mundane tasks. When applied correctly, they can chew through hundreds of research papers at a time and give you deeper(...) Testing 87 Different Stop Loss Strategies [Paper to Profit]Stop losses are a way of life for a trader. They are often ‘do or die’ in situations of intraday and leverage trading. However, we think that the ‘gold standard’ is the average trailing stop. Maybe we add an ATR band to it if we are feeling fancy. But the reality is that there are much more(...) I Tuned the Radio on My Stock Returns [Paper to Profit]It’s dated technology. The radio. But underpinning its humble origins is an electrical engineering field known as signal processing that has applications in literally everything around us: WiFi routers, making music sound better, and even detecting earthquakes. While many readers may assume that I(...) The Surefire Ratio: My Custom Risk Ratio that Supercharged My Investing [Paper to Profit]We’ve all used it. It’s seen as the ‘gold standard’ of investment metrics. But the Sharpe ratio is a dated formula that takes a naive assumption on the market and runs us into walls. It has no concept of prolonged drawdowns or causality, and those that continue to use it as the gospel are(...) I Used a Thermostat’s Logic to Control My Portfolio—And Achieved 24% CAGR [Paper to Profit]As traders, we scour the internet, books, and articles for industry specific information to create our new fancy algorithms. The Black-Scholes model, Markowitz Mean-Variance portfolio optimization, the Capital Asset Pricing Model (CAPM)… These are all systems designed for investment purposes(...) Off to the Races: A Universal Metastrategy [Paper to Profit]We often have baskets of assets that we turn into trading strategies. But also, we have baskets of trading strategies that we need to allocate our capital into. In my last post (here), I demonstrated how to use generative AI to create a theoretically limitless supply of trading strategies. But, this(...) 164 Profitable Trading Strategies [Paper to Profit]As mentioned in my last post (here), I designed and developed a way to quickly produce trading systems with the help of generative AI. And while this sounds like a recipe for disaster, because I constrained the problem to a very specific subset and I focused on only a few factors, the results were(...) Taming OLMAR’s 1222% Backtest into a Sustainable 106% CAGR [Paper to Profit]Often as traders, we equate complexity with profitability. A model’s edge comes from it doing something that no other person on Earth has tried yet. But the data shows that simple rules based on real market factors still outperform most models. Those that continue seeking complexity are headed(...) I Used AI for 30 Minutes and Discovered 8 New Market-Beating Systems [Paper to Profit]Everyone either naively thinks that an LLM will find alpha for them, or equally naively thinks LLMs cannot develop their own systems with any sort of edge. The reality is quite the opposite. When used properly, LLMs can supercharge your strategy research process by at least 10x. Those who aren’t(...) How I Fused Momentum and Mean-Reversion to Achieve 20% CAGR on ETFs Since 2000 [Paper to Profit]We think of momentum and mean reversion as opposing forces—pick one or the other. Yet, data from 2000 shows that blending both via a local adaptive learning filter produces 20% CAGR on liquid equities versus 8% buy-and-hold. Traders ignoring this hybrid edge are leaving significant extra returns(...)