@RitOnchain: this paper is f*cking insane a study out of Northwestern shows how a 3-state Hidden Markov Model absolutely crushes tra…
Summary
A study from Northwestern shows a 3-state Hidden Markov Model that detects market regimes to outperform traditional factor investing in S&P 500 trading, delivering 2% annual alpha and avoiding major crashes.
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Cached at: 07/21/26, 01:35 AM
this paper is f*cking insane
a study out of Northwestern shows how a 3-state Hidden Markov Model absolutely crushes traditional factor investing in trading the S&P 500
it dynamically detects market regimes to dodge major market crashes while delivering 2% annual alpha over standard factors
bookmark before this thread gets buried.
Paper here: https://mdpi.com/1911-8074/13/12/311…
absolutely neo
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agree
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