5min chapter

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191: Combining Algos using State-Based Market Design – Richard Metzger

Better System Trader

CHAPTER

Creating a Trading System That Can Outperform the S&P 500?

State-based design methodology is ultimately where we're going with it. We have these different partitions that are a third, a third and a third. And when you code an algo and you do the back test, you basically see how well does it do on average in the up months and the down months in the sideways. All right, thanks for explaining that. How about we have a quick look at some chart examples first, just so that we can see exactly what you're talking about? So let me just put some slides up on the screen.

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