This is a summary of links recently featured on Quantocracy as of Monday, 07/27/2026. To see our most recent links, visit the Quant Mashup. Read on readers!
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The Inflation Compass Model [CSS Analytics]When inflation shifts from low to high, a traditional 60/40 equity-and-bond allocation breaks down because both fall together. You need real assets to act as the ballast. Ray Dalio Inflation is one of the most powerful forces in asset allocationand one of the hardest to measure in real time.Everyone understands why it matters. The harder question is how to capture it before markets
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Crafting a Trading Strategy [Handelsmeisterei]Alpha rarely arrives as one heroic discovery. It is more like an ant colony carrying a leaf many times its own size: dozens of small contributions, each unimpressive on its own, somehow producing an impressive result. Unfortunately, research also resembles an ant colony in another respect. Much of the work involves running in circles. The first version
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The NAAIM-AAII Equities Allocation Spread: Smart Money Relative Sentiment Indicator [Portfolio Optimizer]In a previous blog post, I described the NAAIM Exposure Index, which represents the average exposure to U.S. equity markets as reported by members of the National Association of Active Investment Managers (NAAIM) in a weekly survey. In this second post of this series on sentiment indicators, I will show how that survey of professional money managers can be turned into a relative sentiment
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GAMLSS/ZAGA: Conditional IR* Distribution For Trading Strategies [Krzysztof Ozimek]I wrote my newest paper mainly to challenge the conventional way of judging an investment or trading strategy through a single observational point of its performance metric an approach that discards precious information about a strategy's effectiveness and can lead to false conclusions. Rather than routinely collapsing a strategy's performance metric to one observational scalar, I