Our Proprietary Strategy Creation and Robustness Testing Process
All of our strategies have been created to the highest possible standards of robustness.
Our robustness testing is based upon our advanced, proprietary application of Robert Pardo’s Walk-Forward Analysis. For those of you interested in more information about this process, Bob presented a detailed description of the WFA process in his first book The Design, Testing and Optimization of Trading Systems published by J. Wiley & Sons in 1991. This information was presented again in the second, expanded edition of his book The Evaluation and Optimization of Trading Strategies also published by J. Wiley in 2008. Pardo's Walk-Forward Analysis is widely considered the gold standard in strategy testing.
For those of you interested in learning how to apply Bob’s process for developing robust trading strategies, you can buy his audio-video course Building Robust Trading Strategies.
Of course, the development process has been refined and improved over the years. The proprietary Pardo Development Process included with Ranger is a detailed implementation of this process.
In any case, all of the Ranger Alpha Enhanced strategies were created with an implementation of this process adapted for Ranger.
These strategies are robust. Whereas, there is never a guarantee that even the most robust strategies will continue to produce alpha, we can guarantee that we have exercised the highest possible standards in their design, creation and testing.
We can also guarantee that we will watch over these strategies.