Advanced Statistical Thinking
Higher-order statistical methods for analyzing strategy performance and market relationships.
5 lessons · 47 min total
1
Biases in Backtesting
Avoid survivorship bias, overfitting, and lookahead bias that make backtest results lie to you before you go live.
9 min read
2
Edge Degradation
Detect when a strategy is losing its edge through regime change, crowding, or structural market shifts before it becomes a losing system.
8 min read
3
Outliers and Their Impact on Metrics
Understand how one big trade can mislead your statistics and learn proper techniques for handling outliers in your performance data.
12 min read
4
Sharpe Ratio & Sortino Ratio
Compare risk-adjusted returns across strategies using the two most important performance ratios in quantitative finance.
9 min read
5
Signal-to-Noise Ratio
Filter "maybe" setups from "must take" ones by measuring and scaling the clarity of your trading signals.
9 min read