A Sensitivity Study
Fine-Tuning The Alpha Engineer Method
Today I'm sharing supplementary research for those interested in customizing The Alpha Engineer methodology to match their specific circumstances. This sensitivity study examines how adjusting six key parameters might affect backtested performance outcomes, providing you with data to consider when implementing the strategy.
The standard methodology described in My Investment Method works well as a baseline approach for most situations. However, individual investors have different constraints—portfolio size, time availability, transaction costs, and risk preferences. This analysis allows you to explore potential adjustments based on your personal situation.
It's important to note that this research presents historical backtested results rather than individual investment advice. The data shows how different parameter configurations performed in the past, but each investor should make their own decisions about implementation based on their unique circumstances. For transparency, I add the complete spreadsheet with backtested results for those who want to analyze the numbers directly.