The Research Handbook
Choose Your Learning Path
Choose a path for your research goal. These sequences follow the handbook’s prerequisite map. Reading and completing exercises do not establish readiness to trade real money.
Company research
M0 · Your first research record
M1 · Household money boundaries
M2 · Evidence and AI checks
F1 · A company research draft
What Do You Own When You Buy a Stock?Indexes, ETFs, and Fair BenchmarksFrom Quotes to Fills: How Trades Actually HappenCalculating Investment Returns: From One Period to CompoundingRisk Beyond Volatility: Drawdowns, Losses, and LiquidityResearching a Company: From Questions to Ongoing ReviewFinding Reliable Sources: Filings, Reports, and DisclosuresBusiness Models and Competitive AdvantagesIndustry, Competition, and the Macro ContextReading Financial Statements: Earnings, Balance Sheets, and EquityWhy Profit Is Not CashManagement, Governance, and Capital AllocationValuation Multiples and What They Really CompareScenarios, Margin of Safety, and UncertaintyWriting a Decision-Useful Investment Research Report
F2 · Independent company research
RISK · Capital and portfolio planning
Understanding Volatility: Standard Deviation and AnnualizationIs Beating a Benchmark Alpha? Returns, Risk, and LuckAsset Allocation and Portfolio ConstraintsHow Much Can You Put at Risk? Work Backward from Loss CapacityDiversification Beyond the Number of HoldingsAllocating Strategy Capital: Evidence, Risk Budgets, and ScalingWhen Strategies Lose Together: Combined Exposure and Risk BudgetsHow Much per Trade? Position Size, Capital Used, and Estimated LossLosing Streaks and Position Changes: Fixed Risk, Adding Positions, and MartingalesLeverage and Margin: Buying Power Is Not Loss CapacityStress Testing and Loss Budgets When Risks Arrive TogetherResponding to Drawdowns: Reduce Risk, Pause, and Define RecoveryInvestment Account Cash Flows: Contributions, Withdrawals, and ReinvestmentRebalancing a Changing PortfolioWhat Did Your Account Earn? Cash Flows, Time-Weighted and Money-Weighted ReturnsWhere Portfolio Returns Come From: Benchmarks, Active Risk, and Attribution
LIFE · Continuing research
Quantitative research
M0 · Your first research record
M1 · Household money boundaries
M2 · Evidence and AI checks
Q1 · A strategy and a small account
What Do You Own When You Buy a Stock?Indexes, ETFs, and Fair BenchmarksFrom Quotes to Fills: How Trades Actually HappenCalculating Investment Returns: From One Period to CompoundingRisk Beyond Volatility: Drawdowns, Losses, and LiquidityWhat Quantitative Research Really MeansWhen Data Becomes KnowableUnderstanding Uncertainty: Samples, Distributions, and CorrelationFrom Indicators to Signals: Windows, Timing, and RulesSpecify a Strategy Without Writing CodeUsing AI to Implement a Strategy: Checking Rules and ResultsHow a Backtest Turns Signals into an Account History
Q2 · Reliable single-strategy methods
Understanding Volatility: Standard Deviation and AnnualizationDividends, Splits, and Adjusted PricesIs Beating a Benchmark Alpha? Returns, Risk, and LuckWhere an Individual Investor Might Find an EdgeValue, Quality, and Momentum Without the HypeBuilding a Universe Without Survivorship BiasStatistical Significance and Economic Value in Investment ResearchSharpe, Sortino, and Calmar Ratios: Meaning and LimitationsReading a Backtest Report Beyond Its ReturnLook-Ahead Bias and Data LeakageOverfitting and the Cost of Repeated TrialsOut-of-Sample and Walk-Forward Validation: Development, Testing, and Forward ObservationCosts, Turnover, and Strategy CapacityRobustness Checks and Sources of Strategy ReturnsConcluding a Quantitative Research Project
Q3 · An independent time-series project
RISK · Capital and portfolio planning
Asset Allocation and Portfolio ConstraintsHow Much Can You Put at Risk? Work Backward from Loss CapacityDiversification Beyond the Number of HoldingsAllocating Strategy Capital: Evidence, Risk Budgets, and ScalingWhen Strategies Lose Together: Combined Exposure and Risk BudgetsHow Much per Trade? Position Size, Capital Used, and Estimated LossLosing Streaks and Position Changes: Fixed Risk, Adding Positions, and MartingalesLeverage and Margin: Buying Power Is Not Loss CapacityStress Testing and Loss Budgets When Risks Arrive TogetherResponding to Drawdowns: Reduce Risk, Pause, and Define RecoveryInvestment Account Cash Flows: Contributions, Withdrawals, and ReinvestmentRebalancing a Changing PortfolioWhat Did Your Account Earn? Cash Flows, Time-Weighted and Money-Weighted ReturnsWhere Portfolio Returns Come From: Benchmarks, Active Risk, and Attribution
RUN · Operations and replication
LIFE · Continuing research
Factor research
M0 · Your first research record
M1 · Household money boundaries
M2 · Evidence and AI checks
Q1 · A strategy and a small account
What Do You Own When You Buy a Stock?Indexes, ETFs, and Fair BenchmarksFrom Quotes to Fills: How Trades Actually HappenCalculating Investment Returns: From One Period to CompoundingRisk Beyond Volatility: Drawdowns, Losses, and LiquidityDividends, Splits, and Adjusted PricesIs Beating a Benchmark Alpha? Returns, Risk, and LuckWhere an Individual Investor Might Find an EdgeValue, Quality, and Momentum Without the HypeWhat Quantitative Research Really MeansWhen Data Becomes KnowableBuilding a Universe Without Survivorship BiasUnderstanding Uncertainty: Samples, Distributions, and CorrelationFrom Indicators to Signals: Windows, Timing, and RulesSpecify a Strategy Without Writing CodeUsing AI to Implement a Strategy: Checking Rules and ResultsHow a Backtest Turns Signals into an Account History
Q2 · Reliable single-strategy methods
Understanding Volatility: Standard Deviation and AnnualizationStatistical Significance and Economic Value in Investment ResearchSharpe, Sortino, and Calmar Ratios: Meaning and LimitationsReading a Backtest Report Beyond Its ReturnLook-Ahead Bias and Data LeakageOverfitting and the Cost of Repeated TrialsOut-of-Sample and Walk-Forward Validation: Development, Testing, and Forward ObservationCosts, Turnover, and Strategy CapacityRobustness Checks and Sources of Strategy ReturnsConcluding a Quantitative Research Project
FA · An independent factor project
Starting Factor Research: From Company Characteristics to SignalsTesting a Factor: IC, Ranked Portfolios, and StabilityIndustry, Size, and Factor Exposure: What Neutralization ChangesCombining Factors: Redundancy, Simple Weights, and Incremental ValueFrom Factor Rankings to Research Portfolios: Holdings, Constraints, Turnover, and CostsComplete a Factor Study: Evidence, Reproduction, and DecayCapstone: Test a Strategy That May Have No Alpha
RISK · Capital and portfolio planning
Asset Allocation and Portfolio ConstraintsHow Much Can You Put at Risk? Work Backward from Loss CapacityDiversification Beyond the Number of HoldingsAllocating Strategy Capital: Evidence, Risk Budgets, and ScalingWhen Strategies Lose Together: Combined Exposure and Risk BudgetsHow Much per Trade? Position Size, Capital Used, and Estimated LossLosing Streaks and Position Changes: Fixed Risk, Adding Positions, and MartingalesLeverage and Margin: Buying Power Is Not Loss CapacityStress Testing and Loss Budgets When Risks Arrive TogetherResponding to Drawdowns: Reduce Risk, Pause, and Define RecoveryInvestment Account Cash Flows: Contributions, Withdrawals, and ReinvestmentRebalancing a Changing PortfolioWhat Did Your Account Earn? Cash Flows, Time-Weighted and Money-Weighted ReturnsWhere Portfolio Returns Come From: Benchmarks, Active Risk, and Attribution
RUN · Operations and replication
LIFE · Continuing research
Financial factor research
M0 · Your first research record
M1 · Household money boundaries
M2 · Evidence and AI checks
Q1 · A strategy and a small account
What Do You Own When You Buy a Stock?Indexes, ETFs, and Fair BenchmarksFrom Quotes to Fills: How Trades Actually HappenCalculating Investment Returns: From One Period to CompoundingRisk Beyond Volatility: Drawdowns, Losses, and LiquidityDividends, Splits, and Adjusted PricesIs Beating a Benchmark Alpha? Returns, Risk, and LuckWhere an Individual Investor Might Find an EdgeValue, Quality, and Momentum Without the HypeWhat Quantitative Research Really MeansWhen Data Becomes KnowableBuilding a Universe Without Survivorship BiasUnderstanding Uncertainty: Samples, Distributions, and CorrelationFrom Indicators to Signals: Windows, Timing, and RulesSpecify a Strategy Without Writing CodeUsing AI to Implement a Strategy: Checking Rules and ResultsHow a Backtest Turns Signals into an Account History
Q2 · Reliable single-strategy methods
Understanding Volatility: Standard Deviation and AnnualizationStatistical Significance and Economic Value in Investment ResearchSharpe, Sortino, and Calmar Ratios: Meaning and LimitationsReading a Backtest Report Beyond Its ReturnLook-Ahead Bias and Data LeakageOverfitting and the Cost of Repeated TrialsOut-of-Sample and Walk-Forward Validation: Development, Testing, and Forward ObservationCosts, Turnover, and Strategy CapacityRobustness Checks and Sources of Strategy ReturnsConcluding a Quantitative Research Project
FA · An independent factor project
Researching a Company: From Questions to Ongoing ReviewFinding Reliable Sources: Filings, Reports, and DisclosuresBusiness Models and Competitive AdvantagesReading Financial Statements: Earnings, Balance Sheets, and EquityWhy Profit Is Not CashUsing Financial Ratios: Profitability, Capital Returns, and SolvencyEarnings Quality and Accounting ComparabilityStarting Factor Research: From Company Characteristics to SignalsTesting a Factor: IC, Ranked Portfolios, and StabilityIndustry, Size, and Factor Exposure: What Neutralization ChangesCombining Factors: Redundancy, Simple Weights, and Incremental ValueFrom Factor Rankings to Research Portfolios: Holdings, Constraints, Turnover, and CostsComplete a Factor Study: Evidence, Reproduction, and DecayCapstone: Test a Strategy That May Have No Alpha
RISK · Capital and portfolio planning
Asset Allocation and Portfolio ConstraintsHow Much Can You Put at Risk? Work Backward from Loss CapacityDiversification Beyond the Number of HoldingsAllocating Strategy Capital: Evidence, Risk Budgets, and ScalingWhen Strategies Lose Together: Combined Exposure and Risk BudgetsHow Much per Trade? Position Size, Capital Used, and Estimated LossLosing Streaks and Position Changes: Fixed Risk, Adding Positions, and MartingalesLeverage and Margin: Buying Power Is Not Loss CapacityStress Testing and Loss Budgets When Risks Arrive TogetherResponding to Drawdowns: Reduce Risk, Pause, and Define RecoveryInvestment Account Cash Flows: Contributions, Withdrawals, and ReinvestmentRebalancing a Changing PortfolioWhat Did Your Account Earn? Cash Flows, Time-Weighted and Money-Weighted ReturnsWhere Portfolio Returns Come From: Benchmarks, Active Risk, and Attribution
RUN · Operations and replication
LIFE · Continuing research
Multi-strategy research
M0 · Your first research record
M1 · Household money boundaries
M2 · Evidence and AI checks
Q1 · A strategy and a small account
What Do You Own When You Buy a Stock?Indexes, ETFs, and Fair BenchmarksFrom Quotes to Fills: How Trades Actually HappenCalculating Investment Returns: From One Period to CompoundingRisk Beyond Volatility: Drawdowns, Losses, and LiquidityWhat Quantitative Research Really MeansWhen Data Becomes KnowableUnderstanding Uncertainty: Samples, Distributions, and CorrelationFrom Indicators to Signals: Windows, Timing, and RulesSpecify a Strategy Without Writing CodeUsing AI to Implement a Strategy: Checking Rules and ResultsHow a Backtest Turns Signals into an Account History
Q2 · Reliable single-strategy methods
Understanding Volatility: Standard Deviation and AnnualizationDividends, Splits, and Adjusted PricesIs Beating a Benchmark Alpha? Returns, Risk, and LuckWhere an Individual Investor Might Find an EdgeValue, Quality, and Momentum Without the HypeBuilding a Universe Without Survivorship BiasStatistical Significance and Economic Value in Investment ResearchSharpe, Sortino, and Calmar Ratios: Meaning and LimitationsReading a Backtest Report Beyond Its ReturnLook-Ahead Bias and Data LeakageOverfitting and the Cost of Repeated TrialsOut-of-Sample and Walk-Forward Validation: Development, Testing, and Forward ObservationCosts, Turnover, and Strategy CapacityRobustness Checks and Sources of Strategy ReturnsConcluding a Quantitative Research Project
Q3 · An independent time-series project
RISK · Capital and portfolio planning
Asset Allocation and Portfolio ConstraintsHow Much Can You Put at Risk? Work Backward from Loss CapacityDiversification Beyond the Number of HoldingsAllocating Strategy Capital: Evidence, Risk Budgets, and ScalingWhen Strategies Lose Together: Combined Exposure and Risk BudgetsHow Much per Trade? Position Size, Capital Used, and Estimated LossLosing Streaks and Position Changes: Fixed Risk, Adding Positions, and MartingalesLeverage and Margin: Buying Power Is Not Loss CapacityStress Testing and Loss Budgets When Risks Arrive TogetherResponding to Drawdowns: Reduce Risk, Pause, and Define RecoveryInvestment Account Cash Flows: Contributions, Withdrawals, and ReinvestmentRebalancing a Changing PortfolioWhat Did Your Account Earn? Cash Flows, Time-Weighted and Money-Weighted ReturnsWhere Portfolio Returns Come From: Benchmarks, Active Risk, and Attribution
RUN · Operations and replication
MULTI · Multi-strategy research
LIFE · Continuing research
Machine learning
M0 · Your first research record
M1 · Household money boundaries
M2 · Evidence and AI checks
Q1 · A strategy and a small account
What Do You Own When You Buy a Stock?Indexes, ETFs, and Fair BenchmarksFrom Quotes to Fills: How Trades Actually HappenCalculating Investment Returns: From One Period to CompoundingRisk Beyond Volatility: Drawdowns, Losses, and LiquidityDividends, Splits, and Adjusted PricesIs Beating a Benchmark Alpha? Returns, Risk, and LuckWhere an Individual Investor Might Find an EdgeValue, Quality, and Momentum Without the HypeWhat Quantitative Research Really MeansWhen Data Becomes KnowableBuilding a Universe Without Survivorship BiasUnderstanding Uncertainty: Samples, Distributions, and CorrelationFrom Indicators to Signals: Windows, Timing, and RulesSpecify a Strategy Without Writing CodeUsing AI to Implement a Strategy: Checking Rules and ResultsHow a Backtest Turns Signals into an Account History
Q2 · Reliable single-strategy methods
Understanding Volatility: Standard Deviation and AnnualizationStatistical Significance and Economic Value in Investment ResearchSharpe, Sortino, and Calmar Ratios: Meaning and LimitationsReading a Backtest Report Beyond Its ReturnLook-Ahead Bias and Data LeakageOverfitting and the Cost of Repeated TrialsOut-of-Sample and Walk-Forward Validation: Development, Testing, and Forward ObservationCosts, Turnover, and Strategy CapacityRobustness Checks and Sources of Strategy ReturnsConcluding a Quantitative Research Project
FA · An independent factor project
Starting Factor Research: From Company Characteristics to SignalsTesting a Factor: IC, Ranked Portfolios, and StabilityIndustry, Size, and Factor Exposure: What Neutralization ChangesCombining Factors: Redundancy, Simple Weights, and Incremental ValueFrom Factor Rankings to Research Portfolios: Holdings, Constraints, Turnover, and CostsComplete a Factor Study: Evidence, Reproduction, and DecayCapstone: Test a Strategy That May Have No Alpha
RISK · Capital and portfolio planning
Asset Allocation and Portfolio ConstraintsHow Much Can You Put at Risk? Work Backward from Loss CapacityDiversification Beyond the Number of HoldingsAllocating Strategy Capital: Evidence, Risk Budgets, and ScalingWhen Strategies Lose Together: Combined Exposure and Risk BudgetsHow Much per Trade? Position Size, Capital Used, and Estimated LossLosing Streaks and Position Changes: Fixed Risk, Adding Positions, and MartingalesLeverage and Margin: Buying Power Is Not Loss CapacityStress Testing and Loss Budgets When Risks Arrive TogetherResponding to Drawdowns: Reduce Risk, Pause, and Define RecoveryInvestment Account Cash Flows: Contributions, Withdrawals, and ReinvestmentRebalancing a Changing PortfolioWhat Did Your Account Earn? Cash Flows, Time-Weighted and Money-Weighted ReturnsWhere Portfolio Returns Come From: Benchmarks, Active Risk, and Attribution