SetupAlpha
Professional-grade trading strategies from research to your portfolio.
We help traders and funds build robust, trading strategies/portfolios. Our strategies are crafted from academic research, live-tested, and ready to run without wasting years coding and research.
For the past three years, we've fully automated our trading strategies, managing a portfolio of over 20 diverse strategies. Before that, we operated semi-automated systems.
Save thousands of hours ⌛ we do the research, testing, and debugging so you can simply download and run.
Our RealTest trading strategies - setupalpha.com/
We’re not financial advisors and this is not financial advice.
SetupAlpha
Testing a stock trading strategy on the current components of the S&P 500 introduces massive survivorship bias.
Your system implicitly knows which companies survived the last 20 years.
You must use historical constituents data.
53 minutes ago | [YT] | 1
View 0 replies
SetupAlpha
If changing an indicator parameter from 20 to 21 collapses your equity curve, you haven't found an edge.
You have found a historical anomaly.
A true statistical edge is a broad, flat plateau of profitability across a wide spectrum of parameters.
Test for parameter stability.
1 day ago | [YT] | 3
View 0 replies
SetupAlpha
Algorithms do not predict the future.
They identify historical asymmetries and exploit probabilities in the present.
If a rule requires predicting an outcome rather than reacting to a quantifiable condition, delete the rule.
Base all logic strictly on present state vectors.
2 days ago | [YT] | 5
View 0 replies
SetupAlpha
One of our RealTest strategies is up +17.2% past 60 days (SPY: -0.6%).
Full strategy rules, RealTest code: setupalpha.com/products/nasdaq-100-mean-reversion-…
4 days ago | [YT] | 5
View 3 replies
SetupAlpha
The worst investing advice? Every indicator works.
Most momentum indicators explain the past but very few predict the future.
I tested 12 of the most popular momentum indicators.
Simplicity predicts the future.
New Substack article: link in comments
5 days ago | [YT] | 8
View 1 reply
SetupAlpha
Leverage does not change the expectancy of a trading system.
It multiplies the variance.
Applying leverage to a negative expectancy system accelerates ruin.
Verify the statistical edge at 1x first.
Scale the multiplier only when the base formula is mathematically sound.
1 week ago | [YT] | 7
View 0 replies
SetupAlpha
Inefficient: "I think the market will pivot because inflation is cooling."
Optimal: "The regime filter indicates a high-volatility state. Long positions are disabled."
Algorithms do not have opinions.
They execute logic based on current inputs.
Delete the discretionary overlay.
1 week ago | [YT] | 1
View 0 replies
SetupAlpha
A 50% drawdown requires a 100% return to reach breakeven.
Capital preservation is not a risk-management choice, it is a mathematical prerequisite for survival.
Volatility drag mathematically guarantees that large drawdowns destroy long-term compound annual growth rates.
1 week ago | [YT] | 2
View 0 replies
SetupAlpha
Does Momentum Actually Predict Future Momentum?
I ranked 21 momentum indicators by how well they actually predict next month.
Every Russell 1000 stocks, 317 months.
New Substack article.
Full ranking + Rules + RealTest script for all 21: link in the comments
1 week ago | [YT] | 6
View 1 reply
SetupAlpha
My friends think I live a high-stakes finance life.
In reality, my Friday nights are spent debugging Monte Carlo simulations and checking data constituents.
Some models are just harder to maintain.
1 week ago | [YT] | 6
View 0 replies
Load more