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Evolution of a Trading Strategy: From Breakouts to Adaptation
The chapter explores the evolution of a trading strategy focused on buying breakouts on heavy volume in US stocks with specific criteria from the late 1990s to the early 2010s. It delves into the criteria for entering short positions, holding period strategies, and the importance of agility and turnover of capital. The discussion also covers the challenges faced, evolution of coding processes, and adjustments made to the strategy amid market shifts and drawdowns.