The law of large numbers in trading and investing for non-statisticians

The law of large numbers is a theorem…

Key components of a quantitative trading strategy

Tick by Tick Stock Data Collection from Interactive Brokers IB Gateway to TimescaleDB for Further Analysis

Clustering illusion

The problem with manual trading is that we see patterns where they don’t exist. It’s like staring at the clouds. — Jon Kafton

The law of large numbers, part II: Estimating expected values with Monte Carlo analysis

Gambler’s Fallacy

Gambler’s fallacy, or Monte Carlo fallacy, is, simply put, a belief that your chances of profit are increasing after series of…

Two basic types of quantitative strategies

Today’s finance world is very creative and complex. There is no shortage of ideas…

What is quantitative trading and other questions

Fooled by adjusted prices

For years I am amazed how many people, even quants and academia, use adjusted prices for their strategies signals…