When quant investors encounter a new dataset, one of the first questions they ask is whether the data is “point-in-time” – a make-or-break factor. Why point-in-time matters To evaluate a dataset’s value, quants backtest how its trading signals would have performed historically. To be meaningful, this backtest must recreate the past exactly as it was […]
Most traders who wish to raise external capital are asked to credibly demonstrate prior trading results. This requirement creates an unpleasant catch-22: a full audit or a formal index for a strategy is usually too expensive and unsuitable for those who are not yet professional money managers, and even an audit may fail to resolve […]
Systematic traders, asset allocators, and other asset managers often use backtesting, in the form of models and screens, to build and analyze investment strategies. Despite its popularity and usefulness in understanding market trends, backtests are perceived by many in the finance world, and even (especially?) by those who build them, as a dark art lacking […]
It’s common for talented traders and aspiring investment managers to build impressive performance track records, only to find that few will take them seriously when they start marketing. It turns out that creating an alpha-generating mouse trap is not always enough to get the world to beat a path to your door. Why should this […]
Why investment managers need a credible track record In the high-stakes world of asset management, credibility is everything. Before starting my investment fund, Clerkenwell Asset Management, I diligently recorded my trading history in a spreadsheet and maintained a daily P&L. Even though the results were strong, very few people outside my direct circle of contacts […]
Digital timestamping is critical to important processes in finance, health care, law, and other fields. RFC-3161 has emerged as the most used standard for creating digital timestamps. RFC-3161 uses traditional Private Key Infrastructure (PKI). A user creates trusted timestamps by sending a data fingerprint to a trusted server, which sends back a digitally signed payload […]