Probability and Statistical Models, Theory
Last week we shared notes on least squares methods.
The reviews I got were mixed: some thought the post was a redundant rehashing of classical statistics texts, while some others loved my style of delivery. For now, I don’t disagree with the former, but I think that is because I have yet to draw the flirtatious interplay between different quantitiative subjects. My vision and value-add for the project is that as we go on, the work will exhibit how different quantitative fields meld together, as well as demonstrate the correspondence between academia and the work of practicioners.
My belief in this vision is strong enough such that it is the reason why each post’s core discussion will be made free to read for all readers to peruse, while only the combined notes will be behind a paywall. The difference between the combined notes and weekly notes is that the combined notes will capture the integration of the various subjects. It will also carry the corrections, additions and revisions I make to the paper as we develop. For instance, I intend to fill up most of the (verify this) sections with proof. If I happen to come across a model that I have to implement with code, then I will append the code to the relevant sections in the future. These revisions will not be available to free readers. For those who think that the weekly notes are useful, I am certain the combined one will be immensely more helpful by orders of magnitude.
Note that these notes are meant to be read digitally, since there will be significant amounts of cross-referencing from subject-subject and topic-topic. There are links within the pdfs, and for those who want to see this explicitly I recommend studying the notes using a PDF reader that marks these links explicitly for you to see, for instance:
The red boxes jump to the appropriate Sections in the notes (unless it references a part of the paper I have not yet released or you have no paid access to).
This week we want to go a little deeper into the theory of probability models and the underlying theory that drives the statistical modelling itself. We also cover the common parametric distributions.
Here are the topics included in todays’s discussion:
For paid readers, we will release the combined notes that contain the inter-references and links between the already released quantitiative subjects on a later date. ( < 14 days). This is because the links between the discussed topics we have so far are not yet that strong.
Here are the topics being planned for release in the next post, that is the theory of testing and introduction to non-parametric methods:
These topics will be crucial in the use for applied methods in trading, which are currently being written under the new and upcoming Chapters:
The reason why I have written but not yet decided to release some of these Sections are because I have literally written them in the past week or so - meaning I have had no time to proof-read them. As you can see from the page-numbering, some of the topics are planned but we have not yet even begun to start writing on it! The project is only just starting, but I am getting excited for the weeks to come. Are you?