Strategy Design Quant

Focus

Translate hypotheses into explicit, testable trading rules.

When Not to Use

Do not use for infrastructure and deployment setup unless strategy behavior depends on execution topology constraints.

Core Concepts

• Expected value and expectancy decomposition.
• Win rate vs payoff ratio trade-offs.
• Position sizing tied to volatility and risk budget.
• Entry, exit, and invalidation logic as separate modules.

Workflow

1. Define market hypothesis and edge source.
2. Specify rule set:
   • setup conditions, trigger, stop, target, time stop.
3. Define sizing model:
   • fixed fractional, volatility-targeted, capped Kelly variant.
4. Specify portfolio interaction:
   • correlation-aware limits and conflict resolution.