What are the steps to prove a quantitative trading strategy?

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What are the steps to prove a quantitative trading strategy?

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Seeking Help Getting Started Using Data Research Statistics

Hi All,

This is my first post in the site.

I'm currently working on a presentation to show a quantitative trading strategy.
The struggle I have now is I do not know how to prove it. What are the steps to prove a strategy?
The historical data is really important for my idea. Where and how I can get the data? Can I do everything in Excel?
The coding & backtesting is not necessarily at this moment as it will be a short presentation (10-15 mins).
All I need to show is how this strategy might work based on some statistical and quantitative analysis.

Any helps will be greatly appreciated.

Thanks

2 responses

James Hutchison

Seems like coding it up would easier than trying to mess with it in excel

No way to say a strategy will work in isolation since there are a lot of variables to account for.

A quick suggestion, if you have a strategy that you would like to "prove", then it would necessary to backtest it.
After the backtest, it would be also necessary to look at it's out-of-sample performance, so paper or live trading it.

I can't say whether there is a definitive proof for a strategy, as it is a strategy. It would be better to try to show it's continued (out of sample) performance relative to the market, if that's what you're going for.

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The material on this website is provided for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation or endorsement for any security or strategy, nor does it constitute an offer to provide investment advisory services by Quantopian.

In addition, the material offers no opinion with respect to the suitability of any security or specific investment. No information contained herein should be regarded as a suggestion to engage in or refrain from any investment-related course of action as none of Quantopian nor any of its affiliates is undertaking to provide investment advice, act as an adviser to any plan or entity subject to the Employee Retirement Income Security Act of 1974, as amended, individual retirement account or individual retirement annuity, or give advice in a fiduciary capacity with respect to the materials presented herein. If you are an individual retirement or other investor, contact your financial advisor or other fiduciary unrelated to Quantopian about whether any given investment idea, strategy, product or service described herein may be appropriate for your circumstances. All investments involve risk, including loss of principal. Quantopian makes no guarantees as to the accuracy or completeness of the views expressed in the website. The views are subject to change, and may have become unreliable for various reasons, including changes in market conditions or economic circumstances.

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The material on this website is provided for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation or endorsement for any security or strategy, nor does it constitute an offer to provide investment advisory services by Quantopian.

In addition, the material offers no opinion with respect to the suitability of any security or specific investment. No information contained herein should be regarded as a suggestion to engage in or refrain from any investment-related course of action as none of Quantopian nor any of its affiliates is undertaking to provide investment advice, act as an adviser to any plan or entity subject to the Employee Retirement Income Security Act of 1974, as amended, individual retirement account or individual retirement annuity, or give advice in a fiduciary capacity with respect to the materials presented herein. If you are an individual retirement or other investor, contact your financial advisor or other fiduciary unrelated to Quantopian about whether any given investment idea, strategy, product or service described herein may be appropriate for your circumstances. All investments involve risk, including loss of principal. Quantopian makes no guarantees as to the accuracy or completeness of the views expressed in the website. The views are subject to change, and may have become unreliable for various reasons, including changes in market conditions or economic circumstances.