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131: Morgan Slade – Strategy Development, Powered by Machine Learning

Chat With Traders

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How to Find a Basket Trading Strategy That Has a Sharp Ratio

I think probably most people who are listening to this right now would be happy to have a strategy which has a sharp ratio of three or four and be able to run a hundred thousand dollars through it. well I mean with you know what I mean like  what are the characteristics of a strategy though which can achieve aSharp ratio of 3 or 4? So these types of strategies typically when you know 60 to 75 percent of all days but they may only win on 51 to 58 percent of all trades if that makes any sense so because you're placing lots of bets the aggregate power of your edge over the fair value win rate plays out over a large number of trades just like somebody who's counting

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