This is a summary of links featured on Quantocracy on Tuesday, 06/25/2024. To see our most recent links, visit the Quant Mashup. Read on readers!
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The Art of Financial Illusion: How to Use Martingale Betting Systems to Fool People [Quantpedia]The Internet (and especially the part related to finance, trading, and cryptocurrencies) can be dangerous and full of offers of guaranteed returns, pictures of forever-growing bank accounts, and guys with golden rings swimming in the bathtub filled with cash. The truth is usually less rosy. Lucrative frauds, so-called white color crimes, have always been there, but with new technologies, they can
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Rebalancing: can trading costs and market frictions be mitigated? [Alpha Architect]The focus of this paper is to test an effective rebalancing method that prioritizes trades with the strongest signals to capture more of the factor premium while reducing turnover and trading costs. The authors coined the term smart rebalancing which involves prioritizing trades based on the strength of their signals in order to minimize costs and turnover while retaining much of the factor