SetupAlpha @SetupAlpha

SetupAlpha offers trading & investing strategies crafted from academic research papers. Ready-to-use, market-tested, and built for real results. youtube.com/@SetupAlphaCap… Joined September 2023

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SetupAlpha @SetupAlpha

5 months ago

Backtesting is not about finding the perfect strategy. It’s about building confidence in a process.

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SetupAlpha @SetupAlpha

5 months ago

A systematic approach beats emotions – Reacting to risk rationally, not emotionally, keeps traders in the game for the long run. #stockmarket #StocksToWatch #stockmarketcrash

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SetupAlpha @SetupAlpha

5 months ago

Diversification is the only "free lunch" in finance: reduces idiosyncratic risk.

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Today, I’m sharing my approach to short selling, a strategy that taught me to see market drops as golden opportunities rather than setbacks. - youtube.com/watch?v=SjBWUk… #automatedtrading #algotrading #realtest

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SetupAlpha @SetupAlpha

5 months ago

Institutional traders feel drawdown just as much as retail traders, entire teams can shut down due to prolonged drawdowns. Knowing your personal drawdown tolerance is key to avoiding emotional decision-making.

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SetupAlpha @SetupAlpha

6 months ago

The most profitable insights are often buried in the 'boring' data, dig deep, and you'll find diamonds where others see dust.

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SetupAlpha @SetupAlpha

6 months ago

Market impact is not just from executed trades but also from unfilled orders: HFTs and market makers react to order book shifts. #stocktrader #trader #stockmarket #daytrader #algotrader #swingtrader

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SetupAlpha @SetupAlpha

6 months ago

Leverage has a nonlinear effect on drawdowns. Reducing leverage by 50% won’t cut drawdowns in half. If your strategy has high drawdowns, don’t just cut leverage. Consider dynamic risk management (CPPI) or stop losses.

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SetupAlpha @SetupAlpha

6 months ago

Stocks in different sectors or with varying liquidity levels behave differently. You should try to separate stocks into different groups, like by sector (e.g., tech, healthcare) or liquidity (e.g., large-cap vs. small-cap stocks). #algotrading #quants

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SetupAlpha @SetupAlpha

6 months ago

“The Hidden Profit Killer” No backtest is complete or realistic without incorporating transaction costs. #trading #quantrading #algotrading #automatedtrading #quantrader #quant #tradebot #stocktrader

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SetupAlpha @SetupAlpha

6 months ago

The best ways to test your model’s sensitivity is by simplifying it. Start by removing conditions or constraints one by one. For instance, in a trading strategy, if you have five conditions to trigger a trade, what happens if you remove one or all but one of those conditions?

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SetupAlpha @SetupAlpha

6 months ago

Stop losses are widely used but often increase risk instead of reducing it due to whipsaw effects. Better approach: Use risk-based position sizing rather than arbitrary stop levels. #StockMarket #algotrading #automatedtrading #StockTrading

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SetupAlpha @SetupAlpha

6 months ago

Treat your signals like a volume knob, not a binary switch… because not every trade is a full-on buy or sell. #automatedtrading #trading #stokctrading #algotrading #qaunttrading

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SetupAlpha @SetupAlpha

6 months ago

Why prioritizes high-liquidity stocks? 1. Smoother price action (fewer fake breakouts) 2. Better execution (no massive spreads eating into profits) 3. Institutional involvement (big money moves drive trends) #StockTrading #stocks #stocksToWatch #USstock #quants #algotrading

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SetupAlpha @SetupAlpha

6 months ago

Many traders fall into the trap of becoming emotionally attached to their strategies. They see their profitable trades as their “intellectual property,” something that belongs to them. But this mindset is counterproductive. #trading #tradingstrategy #Trader #stockmarket #invest

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SetupAlpha @SetupAlpha

6 months ago

This is finally done after hours of research. #quanttrading #quants #alogtrading #tradingstrategy #automatedtrading #usstocks #realtest youtube.com/watch?v=9AQE6i…

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SetupAlpha @SetupAlpha

6 months ago

Traditional trading models assume constant position sizing, but this is suboptimal. Look how to use “dynamic“ position sizing. (short and clear article) setup4alpha.substack.com/p/how-to-imple… #quants #algotrading #automatedtrading #tradingstrategy #quanttrading #tradingbacktest

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SetupAlpha @SetupAlpha

9 months ago

New trading week!I found something interesting! It shows an average yearly return of 21% with a 14% yearly drawdown. I’m curious what you guys think about this. Has anyone else tried ndx style of mr?video - youtu.be/mh4ddfyJUXM?si… #quants #algotrading #quanttrading #algotrader

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Goshawk Trades @GoshawkTrades

10 months ago

Jim Simons' (one of the most successful traders ever) opinion on fundamental trading. "it just didn't seem to be a way to live your life."

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SetupAlpha @SetupAlpha

10 months ago

"Put in hours, strategy looks too good. In the back of your mind: ‘Lookahead bias?’ Nah, I nailed it this time. Next day: find the mistake, fix it, rerun… watch all the ‘gains’ turn to losses. Dying inside 💀 #QuantLife #AlgoTrading #quants #automatedtrading