Better System Trader

174 : How to find statistical edges to improve your trading – Scott Andrews


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“There are literally hundreds of statistically valid patterns in every market.” – Scott Andrews (Investiquant).

So, where are they hiding out, how can we find them and how can we determine the patterns are actually valid and not just random noise in the market?

In this new episode of BST Live, Scott Andrews from Investiquant joins us to discuss how to find statistical edges to improve your trading. Here are just some of the tips you’ll discover:

  • How to find potential edges and which markets are best,
  • Why it’s more important to spend time watching and studying the market than actually trading it,
  • The "3 C's rule" to separate genuine signals from the noise,
  • How long can pattern edges actually last and do dead edges ever recover?
  • How to track the health of an edge using t-score,
  • Using "traditional" indicators in patterns,
  • How to deal with drawdowns (and possibly the trading quote of the year!),
  • The "Speed Bump Rule" to manage drawdowns, plus…
  • Allocating capital, edges in stocks, building pattern libraries, ensembles vs patterns, day trading edges, context, sample size, and much more.

 

Disclaimer: Trading in the financial markets involves a substantial risk of loss and is not suitable for everyone. All content produced by Better System Trader is for informational or educational purposes only and does not constitute trading or investment advice. Past performance is not necessarily indicative of future results.

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