• This chapter describes the utility of documenting during the development of a trading/investment system. As trading systems are linear constructs, the planning, documenting, and communicating of trading system details must be done linearly. Documenting reveals aspects of the process trading strategy research that may not be apparent from general communication, and thus it forces clarity and understanding with the purpose of communicating specific ideas linearly. The ways in which product teams organize discussions of quantitative, qualitative, and technological issues may reveal gaps in logic or unchallenged assumptions. The documenting process exposes faults and facilitates self-criticism and peer review. It eases the organization of ideas, makes possible the organized storing of knowledge, and facilitates transparency, enabling product teams to easily communicate with investors or regulators regarding the objectives, strategies, and risk factors of the trading/investment system. Product team members should follow a standard model for organizing discussions of trading system design and development. For each subsection of the description, writing a brief introduction that describes its organization and its contents is recommended. Logical paths should be diagramed by using logic maps and a standardized protocol for presenting research results should be developed. A research plan for each loop should be created and a common language for communicating ideas within the product team should be developed. ()
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  • 2016-06-24 ()
  • 10.1016/B978-0-12-372549-3.00008-2 ()
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  • Describe Trading/Investment Idea ()


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