This chapter first defines the market anomalies that will be used in the strategies and then the criteria to evaluate them. It also lists the tools and requirements to execute strategies. Finally, it ends with a brief overview of the hypotheses, vocabulary and formalisms used in the book.
This book is built around four concepts. Four categories of anomalies that have been used for decades by successful investors to beat the market. Four concepts that have continued to beat the market in recent years, despite the fact that they are well-recognised.
The four aces of our game are:
Before looking at these in some detail, let’s ...