Skip to content
Professional Quant Practice / Governance and validation

Overview

Reproducible code and eleven-item documentation make Model M inspectable. Governance decides whether the inspectable object is fit for a bounded trial. This topic forces four judgements: which assumptions are load-bearing, which timestamp is legal for a weight at tt, what simpler rule M must beat on the same cost model and dates, and whether Independent Validation rates the proposed paper trial Green, Amber or Red on process / performance / usage.

By the end of this note you should be able to:

  • build an owned assumption register for M's linear long-short construction;
  • sketch lineage from vendor file to weight with observation versus availability time;
  • compare M to a stated challenger without treating an in-sample win as out-of-sample proof;
  • write a short validation memo with one remedial and one recommended action.

In this lesson

  1. Contents
  2. The big picture

The full lesson is for members.

Read the full lesson

New to SelfMadeQuant.com? See membership options or browse the Professional Quant Practice syllabus.