A researcher develops a HFT strategy with an $80\%$ win rate. Is this a reasonable model? Explain.
Tags
When assessing the reasonableness of a high-frequency trading (HFT) strategy's win rate, it's crucial for you to consider not just the win rate, but also the risk-reward ratio, the size of the wins versus the losses, and the sample size of trades taken during the testing phase. Be ready to discuss the statistical significance of the win rate, the potential for overfitting, and the strategy's robustness against different market conditions.
Companies Asking this quesiton.
Hard Difficulty
Hard questions require advanced understanding and critical thinking. Here, your problem-solving skills are key, as these questions often involve complex scenarios needing in-depth analysis and well-structured responses.
Technical question
Technical questions probe into your industry-specific knowledge and skills. They require precise answers and are an opportunity to show your expertise and practical abilities in your field.