Q2: Jessica Stauth – Seeking Alpha? Try Alpha Factors
Chat With Traders
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How to Implement an Alpha Factor in a Portfolio
An alpha factor just a fancy term for a trade signal I mean so the thing about alpha factors is they encapsulate a pricing model. Even if it is predictive there are a lot of other steps for a quant in implementing sort of a portfolio you know managed strategy that come come after that. So one common failure mode is you find an alpha factor but it's a weak alpha factor so on its own you can't exceed transaction costs.
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