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      <title>SignalTrace</title>
      <link>https://www.signaltrace.wiki/markov-model</link>
      <description>Last 10 notes on SignalTrace</description>
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      <item>
    <title>Conclusion</title>
    <link>https://www.signaltrace.wiki/markov-model/Conclusion</link>
    <guid>https://www.signaltrace.wiki/markov-model/Conclusion</guid>
    <description><![CDATA[ Conclusion Direct answer to the vault goal: can Markov-based trading models be substantiated as profitable trading approaches, separating genuine tradeable edge from academic backtest artefacts, regime-classification usefulness, overfitting, and marketing claims? Verdict: a useful component, not a s... ]]></description>
    <pubDate>Fri, 22 May 2026 17:34:18 GMT</pubDate>
  </item><item>
    <title>Calmar Ratio</title>
    <link>https://www.signaltrace.wiki/markov-model/Backtest-Results/Calmar-Ratio</link>
    <guid>https://www.signaltrace.wiki/markov-model/Backtest-Results/Calmar-Ratio</guid>
    <description><![CDATA[ Calmar Ratio The Calmar ratio is a risk-adjusted performance measure equal to a strategy’s annualised return divided by its maximum drawdown — the worst peak-to-trough loss over the measurement window. ]]></description>
    <pubDate>Fri, 22 May 2026 00:00:00 GMT</pubDate>
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    <title>AI Hedge Fund Index Underperformance</title>
    <link>https://www.signaltrace.wiki/markov-model/Concepts/AI-Hedge-Fund-Index-Underperformance</link>
    <guid>https://www.signaltrace.wiki/markov-model/Concepts/AI-Hedge-Fund-Index-Underperformance</guid>
    <description><![CDATA[ AI Hedge Fund Index Underperformance The Eurekahedge AI Hedge Fund Index tracks hedge-fund managers who “utilize artificial intelligence and machine learning theory in their trading processes” — making it the closest available aggregate, live-money readout on whether ML-driven trading strategies act... ]]></description>
    <pubDate>Fri, 22 May 2026 00:00:00 GMT</pubDate>
  </item><item>
    <title>Backtest-to-Live Performance Gap</title>
    <link>https://www.signaltrace.wiki/markov-model/Concepts/Backtest-to-Live-Performance-Gap</link>
    <guid>https://www.signaltrace.wiki/markov-model/Concepts/Backtest-to-Live-Performance-Gap</guid>
    <description><![CDATA[ Backtest-to-Live Performance Gap The backtest-to-live performance gap is the systematic, repeatedly measured deterioration of a trading strategy’s returns between its published or simulated backtest and its performance once deployed with real capital. ]]></description>
    <pubDate>Fri, 22 May 2026 00:00:00 GMT</pubDate>
  </item><item>
    <title>Bellman Equation</title>
    <link>https://www.signaltrace.wiki/markov-model/Concepts/Bellman-Equation</link>
    <guid>https://www.signaltrace.wiki/markov-model/Concepts/Bellman-Equation</guid>
    <description><![CDATA[ Bellman Equation The Bellman equation is the recursive optimality relation, derived by Richard Bellman, that defines the optimal value of a state in a Markov Decision Process: V*(s) = max_a [ R(s,a) + gamma * sum_s’ T(s,a,s’) V*(s’) ] — the best action’s immediate reward plus the discounted expected... ]]></description>
    <pubDate>Fri, 22 May 2026 00:00:00 GMT</pubDate>
  </item><item>
    <title>Combinatorial Purged Cross-Validation</title>
    <link>https://www.signaltrace.wiki/markov-model/Concepts/Combinatorial-Purged-Cross-Validation</link>
    <guid>https://www.signaltrace.wiki/markov-model/Concepts/Combinatorial-Purged-Cross-Validation</guid>
    <description><![CDATA[ Combinatorial Purged Cross-Validation Combinatorial Purged Cross-Validation (CPCV) is a model-evaluation method developed by Marcos López de Prado to obtain honest out-of-sample performance estimates for financial machine-learning models. ]]></description>
    <pubDate>Fri, 22 May 2026 00:00:00 GMT</pubDate>
  </item><item>
    <title>Currency Carry Trade</title>
    <link>https://www.signaltrace.wiki/markov-model/Concepts/Currency-Carry-Trade</link>
    <guid>https://www.signaltrace.wiki/markov-model/Concepts/Currency-Carry-Trade</guid>
    <description><![CDATA[ Currency Carry Trade The currency carry trade sells low-interest-rate “funding” currencies and invests in high-interest-rate “investment” currencies, earning the interest-rate differential. ]]></description>
    <pubDate>Fri, 22 May 2026 00:00:00 GMT</pubDate>
  </item><item>
    <title>Deflated Sharpe Ratio</title>
    <link>https://www.signaltrace.wiki/markov-model/Concepts/Deflated-Sharpe-Ratio</link>
    <guid>https://www.signaltrace.wiki/markov-model/Concepts/Deflated-Sharpe-Ratio</guid>
    <description><![CDATA[ Deflated Sharpe Ratio The Deflated Sharpe Ratio (DSR) is a performance statistic introduced by David Bailey and Marcos López de Prado (2014) that corrects the conventional Sharpe ratio for two leading sources of inflation: selection bias under multiple testing, and non-Normally distributed (skewed, ... ]]></description>
    <pubDate>Fri, 22 May 2026 00:00:00 GMT</pubDate>
  </item><item>
    <title>Differential Sharpe Ratio</title>
    <link>https://www.signaltrace.wiki/markov-model/Concepts/Differential-Sharpe-Ratio</link>
    <guid>https://www.signaltrace.wiki/markov-model/Concepts/Differential-Sharpe-Ratio</guid>
    <description><![CDATA[ Differential Sharpe Ratio The Differential Sharpe Ratio (DSR) is an online, incremental approximation of the Sharpe ratio proposed by John Moody and collaborators in Moody Wu Liao Saffell 1998 and used throughout Moody and Saffell 2001. ]]></description>
    <pubDate>Fri, 22 May 2026 00:00:00 GMT</pubDate>
  </item><item>
    <title>Dynamic Programming</title>
    <link>https://www.signaltrace.wiki/markov-model/Concepts/Dynamic-Programming</link>
    <guid>https://www.signaltrace.wiki/markov-model/Concepts/Dynamic-Programming</guid>
    <description><![CDATA[ Dynamic Programming Dynamic programming (DP) is the method, introduced by Richard Bellman in 1953, for solving sequential multi-stage decision problems by decomposing them into nested sub-problems and recursing on the value function. ]]></description>
    <pubDate>Fri, 22 May 2026 00:00:00 GMT</pubDate>
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