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SI251: A Deep Dive Into Models and Systems ft. Richard Brennan

Top Traders Unplugged

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Correlations, Diversification, and System Ensembles

This chapter explores the concept of correlations in trading and discusses the benefits and limitations of diversification. It also highlights the use of system ensembles in trend following to break correlation and increase trade frequency. The chapter emphasizes the importance of considering outliers and the unique properties of financial markets.

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