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Understanding Alternative Data in Quantitative Strategies

A rigorous, theory-and-practice path into alternative data for quant researcher aspirants, prop trading applicants, and traders scaling a systematic book. Covers the taxonomy of alt data (web, satellite, transaction, text, supply chain), sourcing and compliance in the Indian context, feature engineering, signal research, rigorous backtesting, portfolio integration, and real Indian case studies from satellite tracking to UPI data. Built around NSE, BSE, and Indian vendor examples throughout.

MODULES

9

DURATION

~6.3 hrs

TRACK

Quantitative Finance

Access Level

LEARNER

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Everything included

Full Text Playbooks

Actionable Exercises

Mobile Reading Mode

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Curriculum Breakdown

Chapter 1: Why Alternative Data Matters in Quant Research

4 Lessons

What Counts as Alternative Data? A Working Definition for Quant Researchers9 min read

Alpha Decay and the Search for Edge: Why Traditional Data Isn't Enough10 min read

Traditional vs Alternative Data: A Comparative Framework9 min read

The Alternative Data Ecosystem: Providers, Aggregators, and Buy-Side Users in India11 min read

Chapter 2: The Taxonomy of Alternative Data

5 Lessons

Web and App Data: Scraping, App Analytics, and Search Trends10 min read

Satellite Imagery and Geolocation Data for Economic Signals11 min read

Transaction and Payment Data: UPI, Credit Card Panels, and Consumption Proxies11 min read

Text and Sentiment Data: News, Social Media, and Regulatory Filings10 min read

Supply Chain and Corporate Data: GST Filings, Import-Export Records, and Job Postings10 min read

Chapter 3: Sourcing Alternative Data: Vendors, Costs, and Compliance

4 Lessons

Mapping the Alternative Data Vendor Landscape: Global and India-Specific10 min read

Data Licensing, Pricing Models, and Budgeting for a Quant Desk9 min read

SEBI Regulations, Data Privacy, and Ethical Boundaries in Alt Data Use11 min read

Build vs Buy: In-House Scraping Pipelines vs Third-Party Vendors10 min read

Chapter 4: From Raw Data to Usable Signal

4 Lessons

Data Cleaning Challenges Unique to Alternative Data10 min read

Point-in-Time Data: Handling Reporting Lags and Restatements10 min read

Feature Engineering for Alternative Data Signals12 min read

Aligning Alt Data with NSE and BSE Trading Calendars and Market Data10 min read

Chapter 5: Signal Research and Alpha Construction

4 Lessons

From Feature to Signal: Hypothesis-Driven Research Design10 min read

Statistical Validation: Information Coefficient and Signal Decay Curves12 min read

Combining Alternative Data with Traditional Factors11 min read

Case Study: Building a Web-Traffic Signal for Indian E-Commerce and Retail Stocks13 min read

Chapter 6: Backtesting Alternative Data Strategies Rigorously

4 Lessons

Look-Ahead Bias and Point-in-Time Data: The Silent Backtest Killer10 min read

Survivorship Bias and Coverage Gaps in Alternative Data10 min read

Overfitting and Multiple Testing When Data Is Expensive11 min read

Realistic Backtesting: Transaction Costs, Capacity, and Liquidity Constraints11 min read

Chapter 7: Portfolio Integration and Risk Management

3 Lessons

Sizing Positions Driven by Alternative Data Signals9 min read

Correlation, Crowding, and Capacity Limits in Alternative Data Strategies10 min read

Risk Management When an Alternative Data Signal Breaks Down10 min read

Chapter 8: Alternative Data in Practice: Indian Market Case Studies

4 Lessons

Case Study: Satellite Data for Tracking Cement Demand and Retail Footfall in India12 min read

Case Study: UPI Transaction Data as a Consumption Nowcasting Signal12 min read

Case Study: Web Scraping E-Commerce Prices for Inflation and Demand Signals11 min read

Lessons from Indian Quant Funds and Prop Desks Using Alternative Data11 min read

Chapter 9: Careers, Tools, and the Future of Alternative Data

4 Lessons

Skills and Tooling for Alt-Data Quant Roles: Python, SQL, and Cloud10 min read

How Hedge Funds and Prop Trading Firms Hire for Alternative Data Roles9 min read

Emerging Trends: AI-Generated Data and Alternative Data Marketplaces10 min read

Building Your Own Alternative Data Portfolio Project12 min read