Advanced
Advanced Statistical Arbitrage: Multi Factor Approaches
A rigorous, code-first path into statistical arbitrage and multi-factor investing for quant researcher aspirants, prop trading applicants, and traders scaling a systematic book. Goes from cointegration and pairs trading through basket mean-reversion, factor construction, signal combination, portfolio risk, honest backtesting, execution microstructure, and the SEBI algo-trading and tax framework that governs running this live in India. Built on real NSE and BSE data (Nifty 500 pairs, sector baskets, Kite Connect execution), with Python throughout.
MODULES
10
DURATION
~7.1 hrs
TRACK
Quantitative Finance
Access Level
LEARNER
Everything included
Full Text Playbooks
Actionable Exercises
Mobile Reading Mode
Lifetime Updates
Curriculum Breakdown
Chapter 1: Statistical Arbitrage Foundations: From Pairs to Multi-Factor Systems
4 Lessons▶
What Statistical Arbitrage Really Means: Market Neutrality and Alpha Isolation10 min read
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The Evolution from Simple Pairs Trading to Multi-Factor Stat Arb9 min read
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Stationarity, Mean Reversion, and Why Prices Aren't Random Walks (Always)11 min read
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Setting Up Your Quant Toolkit: Data Sources for Indian Equities10 min read
Chapter 2: Pairs Trading and Cointegration Mechanics
4 LessonsChapter 3: From Pairs to Baskets: Multi-Asset Mean Reversion
4 LessonsChapter 4: Building Your First Factor Model
4 Lessons▶
What Is a Factor, Really: From Fama-French to Custom Alpha Signals10 min read
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Value, Momentum, Quality, and Low-Volatility Factors in the Indian Market11 min read
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Constructing Factor Scores: Cross-Sectional Ranking and Z-Scoring10 min read
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Factor Orthogonalization: Removing Overlap Between Signals11 min read
Chapter 5: Multi-Factor Signal Combination
4 LessonsChapter 6: Portfolio Construction and Risk Management
4 LessonsChapter 7: Backtesting Without Fooling Yourself
4 Lessons▶
Survivorship Bias, Look-Ahead Bias, and Data Snooping10 min read
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Walk-Forward Testing and Out-of-Sample Validation11 min read
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Transaction Costs, Slippage, and Impact Modeling for Indian Markets11 min read
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Case Study: Backtesting a Multi-Factor Stat Arb Strategy on 10 Years of Nifty 500 Data13 min read
Chapter 8: Execution and Market Microstructure in India
4 LessonsChapter 9: Regulatory and Operational Infrastructure
4 Lessons▶
SEBI's Algo Trading Framework: Registration, Approval, and Tagging Requirements11 min read
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Risk Management Systems (RMS) and Broker-Level Controls10 min read
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Taxation of Systematic Trading: Business Income vs Capital Gains12 min read
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Building a Compliant, Auditable Systematic Trading Operation10 min read