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Research

Notes on process, risk and the craft of trading.

Perspectives from the SFZ Capital team on building durable trading processes. Educational in nature — not investment advice or recommendations.

Risk Management · 6 min read

Why Maximum Drawdown Matters More Than Peak Return

Gross return is easy to present. Drawdown is what you actually live through — and it is the more honest measure of a strategy.

SFZ Capital Research
Backtesting · 8 min read

Overfitting: The Risk You Cannot See in the Backtest

A strategy can have a perfect backtest and no edge whatsoever. Understanding overfitting — and how to detect it — is one of the most important skills in systematic trading.

SFZ Capital Research
Risk Management · 7 min read

Position Sizing: The Variable Most Traders Underestimate

Entry signals get most of the attention. Position sizing is where most of the edge — and most of the risk — actually lives.

SFZ Capital Research
Analytics · 5 min read

The Equity Curve as a Diagnostic Tool

Most traders look at the equity curve to measure success. The better use is as a diagnostic — a way to read what a strategy is actually doing beneath the surface.

SFZ Capital Research
Methodology · 6 min read

Discipline Over Prediction: Why Process Beats Forecasting

Markets reward repeatable process far more reliably than they reward forecasts. A look at why systematic discipline is the durable edge.

SFZ Capital Research
Backtesting · 7 min read

Reading a Backtest Honestly

A backtest is a hypothesis, not a promise. How to interpret historical results without deceiving yourself.

SFZ Capital Research
Risk Management · 5 min read

Risk Is the Only Input You Control

You cannot choose your returns, but you can choose your risk. Why position sizing is the real strategy.

SFZ Capital Research