This is a summary of links recently featured on Quantocracy as of Tuesday, 06/24/2025. To see our most recent links, visit the Quant Mashup. Read on readers!
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Model: Advances in clustering [Trading the Breaking]Look, heres the thingweve all been drinking the correlation Kool-Aid for decades, right? Its elegant, sure. Clean math. Easy to explain to the PMs. But lets get real: relying on a correlation matrix in todays markets is like trying to sail a speedboat with an anchor chained to your hull. Its not just simplisticits dangerously misaligned with how the game actually works.
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Experimental Control for Machine Learning of Temporal Effects in Quantitative Trading [Hanguk Quant]Experimental control is one of the foundational principles of sound scientific experimentation. Its importance lies in ensuring that the conclusions drawn from an experiment are valid and attributable to the factor(s) being investigated, rather than to confounding variables. Experimental control allows researchers to manipulate only the independent variable(s), establishing causal relationships by
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Comprehensive Comparison of Algorithmic Trading Platforms [Jonathan Kinlay]This comprehensive analysis examines three leading algorithmic trading platformsBuild Alpha, Composer, and StrategyQuant Xacross five critical dimensions: comparative reviews and rankings, asset class applicability, ensemble strategy capabilities, walk-forward testing and robust optimization, and strategy implementation with broker connectivity. Through extensive research of platform
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Rethinking Leveraged ETFs and Their Options [Relative Value Arbitrage]A leveraged Exchanged Traded Fund (LETF) is a financial instrument designed to deliver a multiple of the daily return of an underlying index. Despite criticism, LETFs are frequently used by institutional investors. In this post, I discuss the practicality of LETFs and show that they are not as risky as they may seem. Information Content of Leveraged ETFs Options Leveraged ETFs, or exchange-traded