Research Design: The Complete Guide
Have you ever wondered why some trading strategies work in backtests but fail in live markets? The answer often lies not in the strategy itself, but in ...
Have you ever wondered why some trading strategies work in backtests but fail in live markets? The answer often lies not in the strategy itself, but in the research design used to develop it. Research design is the framework that guides how data is collected, measured, and analyzed to answer specific research questions. It provides a structured approach to answering research questions, ensuring that the study's goals are met in an organized, reliable, and valid manner. Without a strong research design, even the most sophisticated trading strategy development process can produce unreliable results. Key fact: A well-structured research design enhances validity by ensuring the study measures what it intends to, and improves reliability by enabling reproducibility. This is critical for both academic research and practical trading strategy development. Research design is the strategic framework that guides the methods and procedures for collecting and analyzing data to answer specific research questions. It serves as the blueprint for conducting a study, outlining the methodology and processes needed to answer a research question effectively while maintaining scientific validity.