Expectations when going short / buying puts

Wanted to give a short heads-up in this forum post.

I used this factor function for a while in short and put option systems, as was also found in the ranking system I refered to:

CurQEPSStdDev/abs(CurQEPSMean)

As described here (IMPORTANT: Fix for StdDev of split-sensitive estimates has been released) this previously gave non realistic returns. I still think it is a good factor to use, but the returns that were previously obtained were wrong.

Best,

Victor

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