Ernie Chan Backtesting Question

Discussion in 'Strategy Building' started by ratl, Mar 16, 2025.

  1. ratl

    ratl

    I recently got into the trading world and have been reading Ernie Chan's book on running your own quantitative trading business. In the book he demonstrates a couple of backtests, and there are a few conceptual problems I can't work out.

    - Are positions held overnight in the tests?
    -

    I'm a programmer by trade and as such have mangled the python code endlessly but to no avail.
     
  2. ratl

    ratl

    Apparently spacebar posts a thread :/

    To finish, that's basically the only question I have.
     
  3. SunTrader

    SunTrader

    If you have the book, shouldn't you be telling us? If we cared.

    Otherwise ever heard of G o o g l e and new and improved half priced if you act now, Google with Gemini AI?

    Q: Does Ernie Chan hold overnight?

    A: Based on Ernie Chan's own statements, he does not typically hold overnight positions in his Tail Reaper strategy.
    Here's a more detailed explanation:
    • Tail Reaper Strategy:
      Ernie Chan, CEO of Predictnow.ai, is known for his Tail Reaper strategy, which aims to hedge against tail risk (extreme market movements).
    • No Overnight Positions:
      Chan has stated that his Tail Reaper strategy is designed to work effectively even without holding any overnight positions.
    • Intraday Focus:
      The focus of the strategy is on intraday (within the same trading day) movements and hedging against potential tail events, rather than holding positions overnight.
    • Past performance is not indicative of future results