Systematic Long Short

Systematic Long Short

The Canonical Formula That Determines How Fast You Should Trade

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Systematic Long Short
Dec 14, 2025
∙ Paid

Every one faces the same question when trying to trade into their optimal positions: trade fast and pay impact, or trade slow and eat volatility. Most traders think about this as a continuous spectrum of choices. This paper argues there is essentially a single number - a half-life - that tells you exactly how aggressive to be, and it depends on just three inputs you already know.

The formula is dead simple:

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