Tag Archives: momentum trading
Two days ago, equity markets worldwide were spooked by Italian political turmoil and possibility of a euroskeptic government that will drive Italy out of euro. The S&P 500 fell 1.2%. Next day, according to financial media, the market rallied 1.3% … Continue reading
Is BTFD a meme for bears in an attempt to explain how the market is manipulated higher by central banks? Or is it something more fundamental?
Neal Berger, the CIO of Eagle’s View Asset Management, thinks trend-following and other “pedestrian” quant strategies, such as momentum, won’t survive due to lack of dumb money. I have also been saying this for a few years.
One of the most difficult problems of tactical investing is using timing strategies that are not biased due to special market conditions of the past. However, most promoters of tactical investing are unaware of this problem and rely on hypothetical … Continue reading
In this article I include evidence that was not explicitly presented in a recent TED interview of Jim Simons, where he said that trend-following stopped working long ago. In fact, short-term trend-following was arbitraged out in the 1980s. For access to … Continue reading