Alpha Rating System

The Alpha Rating System provides standardized scoring of trading strategies. Following the convention in academic papers, a hedge portfolio return is constructed by taking equal weighted long positions in stocks of the 'best' decile and equal-weighted short positions in stocks of the 'worst' decile of the paper's trading strategy signal. Alpha is measured as the resulting annual buy-and-hold hedge portfolio return. Note that risk and trading costs are ignored by this rating system. Each paper is then awarded an alpha rating based on the following scale:

^aOne alpha rating: a hedge portfolio return of 5% or less.

^aa Two alpha rating: a hedge portfolio return of between 5% and 10%.

^aaa Three alpha rating: a hedge portfolio return of 10% or more.

Note: In cases of papers with multiple strategies or results that are not reported using the above convention, we have exercised judgment in awarding an alpha rating.

In order to be included in AlphaSeeker.com, a paper must satisfy the following criteria:

	An alpha rating of one or higher
	Contain significant new research (we don't list papers that provide minor twists of earlier research)
	Employ a trading strategy that is grounded in fundamental analysis (we don't list papers using straight technical analysis).