Book Description
Design more successful trading systems with this practical guide to identifying alphas
Finding Alphas seeks to teach you how to do one thing and do it well: design alphas. Written by experienced practitioners from WorldQuant, including its founder and CEO Igor Tulchinsky, this book provides detailed insight into the alchemic art of generating trading signals, and gives you access to the tools you need to practice and explore. Equally applicable across regions, this practical guide provides you with methods for uncovering the hidden signals in your data. A collection of essays provides diverse viewpoints to show the similarities, as well as unique approaches, to alpha design, covering a wide variety of topics, ranging from abstract theory to concrete technical aspects. You'll learn the dos and don'ts of information research, fundamental analysis, statistical arbitrage, alpha diversity, and more, and then delve into more advanced areas and more complex designs. The companion website, www.worldquantchallenge.com
, features alpha examples with formulas and explanations. Further, this book also provides practical guidance for using WorldQuant's online simulation tool WebSim® to get handson practice in alpha design.
Alpha is an algorithm which trades financial securities. This book shows you the ins and outs of alpha design, with key insight from experienced practitioners.
Learn the seven habits of highly effective quants
Understand the key technical aspects of alpha design
Use WebSim® to experiment and create more successful alphas
Finding Alphas is the detailed, informative guide you need to start designing robust, successful alphas.
Table of Contents
 Preface
 Acknowledgments
 About the WebSim™ Website
 PART I: INTRODUCTION

PART II: DESIGN AND EVALUATION
 4 Alpha Design
 5 How to Develop an Alpha. I: Logic with an Example
 6 How to Develop an Alpha. II: A Case Study
 7 Fundamental Analysis
 8 Equity Price and Volume
 9 Turnover
 10 Backtest – Signal or Overfitting
 11 Alpha and Risk Factors
 12 The Relationship between Alpha and Portfolio Risk
 13 Risk and Drawdowns
 14 Data and Alpha Design
 15 Statistical Arbitrage, Overfitting, and Alpha Diversity
 16 Techniques for Improving the Robustness of Alphas
 17 Alphas from Automated Search
 18 Algorithms and Special Techniques in Alpha Research
 PART III: EXTENDED TOPICS
 PART IV: NEW HORIZON – WEBSIM™
 PART V: A FINAL WORD
 References
 Index
 EULA
Product Information
 Title: Finding Alphas: A Quantitative Approach to Building Trading Strategies
 Author(s):
 Release date: October 2015
 Publisher(s): Wiley
 ISBN: 9781119057864