How We Work

Our Methodology

From academic paper to actionable strategy in six steps. Every strategy on this site goes through the same rigorous process.

The Process

Every strategy follows the same six-step process from research to implementation.

Step 1

Find the Research

We read the academic papers

We start by identifying peer-reviewed research from top finance journals. These papers have survived rigorous scrutiny — methodology checks, data validation, and replication attempts. We focus on strategies with decades of out-of-sample evidence, not just in-sample backtests.

  • Source papers from Journal of Finance, JFE, Review of Financial Studies, and SSRN
  • Prioritize strategies with 20+ years of documented evidence
  • Look for replication studies that confirm original findings
  • Verify the strategy works across multiple markets and time periods
Step 2

Translate to Plain English

We decode academic jargon

Academic papers are written for other academics. We translate complex terminology, Greek symbols, and statistical concepts into language anyone can understand. The core idea of every strategy should be graspable in under a minute.

  • Convert academic jargon to everyday language
  • Explain the "why" — what behavioral bias or risk premium drives the strategy
  • Provide intuitive examples that illustrate the concept
  • Create an overview that captures the strategy in 30 seconds
Step 3

Extract Key Mathematics

We highlight what matters

Not all math in a paper is essential for implementation. We identify the core formulas you actually need, explain what each variable means, and show worked examples with real numbers. Plain English first, then the technical notation.

  • Identify the 2-3 formulas that define the strategy
  • Define every variable in simple terms
  • Provide step-by-step calculation examples
  • Show how to interpret the results
Step 4

Define Clear Rules

We make it systematic

Vague guidance leads to inconsistent execution. We convert each strategy into explicit, unambiguous rules: when to enter, when to exit, how much to allocate, and when to rebalance. No judgment calls required.

  • Specify exact entry criteria (what triggers a buy)
  • Define exit rules (when and why to sell)
  • Set position sizing guidelines (how much per trade)
  • Establish rebalancing frequency (weekly, monthly, annually)
Step 5

Create Implementation Guide

We show you how to do it

Theory is useless without execution. We provide step-by-step guides that walk you through the entire process — from choosing your stock universe to placing trades. Practical tips, tool recommendations, and common pitfalls included.

  • Step-by-step instructions from start to finish
  • Recommendations for free screeners and data sources
  • Tips to avoid common mistakes
  • Guidance on broker selection and order types
Step 6

Document the Risks

We tell you what can go wrong

Every strategy has failure modes. We don't hide the downsides — we document them. Extended drawdowns, regime changes, capacity constraints, and transaction costs. You should know the risks before committing capital.

  • Historical drawdowns and recovery periods
  • Market conditions where the strategy underperforms
  • Capacity limits and crowding concerns
  • Transaction costs and practical implementation drag
Consistent Structure

Every Strategy Page Includes

The same sections in the same order, so you always know where to find what you need.

1

Overview

Core idea, key takeaways, and historical performance summary

2

Academic Research

Original papers with links, key findings, and author citations

3

Mathematics

Plain English explanation followed by technical formulas

4

Strategy Rules

Entry, exit, sizing, and rebalancing criteria

5

Implementation

Step-by-step guide with tips and tool recommendations

6

Risks

Failure modes, drawdowns, and limitations

Our Quality Standards

What we require before documenting a strategy.

Peer-Reviewed Research

Must be published in a recognized journal or have significant academic citations.

Out-of-Sample Evidence

Strategy must work across different time periods, not just the original study.

Economic Rationale

There must be a clear explanation of why the strategy works (risk premium, behavioral bias).

Retail Implementable

Strategy must be executable by individual investors with retail brokers and reasonable capital.

See It in Action

Every strategy follows this methodology. Pick one and see the structure yourself.