PCA

The PCA Method in Practical Use: Guidelines and Criteria for Selecting and Ordering Asset Symbols – Trading Systems – 7 June 2025

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The PCA Method in Practical Use: Guidelines and Criteria for Selecting and Ordering Asset Symbols

How to Properly Specify the Order of Asset Symbols When Using the PCA Method Implemented in the PCA Arbitrage 3X EA Expert Advisor The Principal Component Analysis (PCA) method has long been recognized as a powerful tool for constructing market-neutral hedging strategies. It enables the analysis of the covariance structure of assets, isolates their contributions … Read more

ML Pipeline with PCA, VIF & Evaluation

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ML Pipeline with PCA, VIF & Evaluation

By Mahavir Bhattacharya Welcome to the second part of this two-part blog series on the bias-variance tradeoff and its application to trading in financial markets. In the first part, we attempted to develop an intuition for bias-variance decomposition. In this part, we’ll extend what we learned and develop a trading strategy. Prerequisites A reader with … Read more