The Process

From raw data to
educational insight

Every report published on Trading.HK follows a rigorous, transparent, and repeatable methodology. Here's how we turn market hypotheses into research you can learn from.

01

Research & Hypothesis

Every report begins with a question. Our research team identifies potential market anomalies, technical patterns, or systematic strategies that merit investigation.

We review academic papers, market microstructure studies, and empirical observations to form a testable hypothesis.

Academic Research Market Anomalies Pattern Recognition
Example Hypotheses

"Does the RSI(14) oversold reversal strategy work consistently on HSI constituent stocks?"

"Can a simple moving average crossover system beat buy-and-hold on the S&P 500 over the last 20 years?"

"Do stocks with increasing volume on up-days outperform the market?"

Example Parameters
Entry Signal RSI(14) < 30
Exit Signal RSI(14) > 70 or 10-day hold
Position Sizing 5% of portfolio per trade
Stop Loss -8% from entry
Universe HSI 50 constituents
02

Strategy Design

Once a hypothesis is formed, we translate it into a fully defined, rule-based strategy. Every parameter is specified precisely so the backtest is entirely reproducible.

Transparency is key — every parameter is published in the final report so readers can verify and learn from the methodology.

03

Historical Backtesting

The strategy is run against historical price data spanning years of market conditions — bull markets, bear markets, crashes, and sideways periods.

We use institutional-grade data sources and apply rigorous bias controls:

Bias Controls
✓ No look-ahead bias
✓ No survivorship bias
✓ Transaction costs
✓ Slippage modeling
Backtest Progress ✓
2014 — 2024 10 years
0
Trading Days
0
Simulated Trades
0%
Win Rate
0
Sharpe Ratio

Sample data for illustration purposes only.

Each report contains:
Full strategy rules (reproducible)
Equity curve and drawdown chart
Key metrics (Sharpe, win rate, max DD)
Monthly/yearly return breakdown
Risk analysis and stress testing
Statistical significance tests
Market condition analysis
Educational commentary and insights
04

Report & Publish

Results are compiled into a comprehensive, standardized report. Every report includes the same core metrics, making it easy to compare strategies across different markets and time periods.

Ready to explore?

Browse our library of educational backtest reports. Each one follows the rigorous process described above.