For even the most experienced traders, designing the predictive mathematical models (alphas) at the core of quantitative trading is a complex, labor-intensive process that requires significant research and testing. Based on ever-changing data, quantitative strategies may have limited life spans; new models must be generated on a constant basis. Igor Tulchinsky, Founder, Chairman, and CEO of WorldQuant, and the team of researchers, portfolio managers, and technologists he has assembled at his global quantitative asset management firm have significant firsthand experience in this area. Finding Alphas: A Quantitative Approach to Building Trading Strategies draws on WorldQuant’s expertise in developing quantitative mathematical models to help you identify potentially profitable opportunities and build your own quantitative trading strategies. Covering everything from basic theory to advanced design and analysis techniques, this one-stop resource:

• Describes how to design, evaluate, and deploy quantitative trading strategies.
• Covers the development and backtesting of alphas, momentum alphas, the use of futures and forwards, institutional research in alpha development, and more.
• Explains how to use WebSim, WorldQuant’s proprietary, internet-enabled simulation platform.

Discover the ins and outs of designing predictive trading models

Drawing on the expertise of WorldQuant’s global network, this new edition of Finding Alphas: A Quantitative Approach to Building Trading Strategies contains significant changes and updates to the original material, with new and updated data and examples.

Nine chapters have been added about alphas – models used to make predictions regarding the prices of financial instruments. The new chapters cover topics including alpha correlation, controlling biases, exchange-traded funds, event-driven investing, index alphas, intraday data in alpha research, intraday trading, machine learning, and the triple axis plan for identifying alphas.

• Provides more references to the academic literature

• Includes new, high-quality material

• Organizes content in a practical and easy-to-follow manner

• Adds new alpha examples with formulas and explanations

If you’re looking for the latest information on building trading strategies from a quantitative approach, this book has you covered.