This is a summary of links recently featured on Quantocracy as of Monday, 06/01/2026. To see our most recent links, visit the Quant Mashup. Read on readers!
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When Is a Mispricing Not a Mispricing? [Robot Wealth]Last time, I showed you a pattern in energy spreads and asked what it meant. The answer seemed obvious: XOM is the outlier. Every spread involving XOM is stretched. The spreads not involving XOM are near zero. But on this seemingly obvious map of mispricings, XOM may not mark the spot The name Triangulated Stat Arb comes from triangulation, the navigation technique. One bearing on a landmark
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AI Overfitting in Trading Systems [Wisdom Trading]In-sample looks great. Live trading is where the truth lives. A few weeks ago we wrote about how we use AI alongside Trading Blox what it does well, what it doesnt, and the workflow we run. The single biggest risk we flagged was overfitting specifically, the way AI overfitting in trading systems quietly destroys live performance after pretty backtests. That deserves its own post,
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New Feature: Model Portfolio Withdrawal Rates [Allocate Smartly]Weve added Safe and Perpetual Withdrawal Rates to your custom Model Portfolios. New here? Learn more: What is a Model Portfolio? What are Withdrawal Rates? The Safe Withdrawal Rate (SWR) measures the max amount that could have been withdrawn each year in retirement (with an annual adjustment for inflation) without running out of money over the worst retirement period. Its the source of the
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Market Effect Research: Holiday Seasonality – Part 2 [TradeQuantiX]Welcome to the Systematic Trading with TradeQuantiX newsletter, your go-to resource for all things systematic trading. This publication will equip you with a complete toolkit to support your systematic trading journey, sent straight to your inbox. Remember, its more than just another newsletter; its everything you need to be a successful systematic trader. I recently launched a
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Institutions return expectations across assets and time [Alpha Architect]Asset prices are often viewed through a simple lens. Investors form expectations, discount future cash flows, and determine prices accordingly. But in reality, expectations themselves are complex. They vary across institutions, across asset classes, and over time. This paper introduces a new perspective. Institutional expectations are not random or purely behavioral. They are structured,