Tag Archives: trend following

Social Media Woes and the Risks of Trend-following

Trend-followers in social media stocks and ETFs that did not apply prudent risk and money management schemes are risking going into the red. The dynamics of the uptrend and of the decline that followed did not leave any room for naive trend-following … Continue reading

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The Passive Indexing Buy and Hold Crowd Should Reconsider

They should reconsider their unreasonable stand against active management after taking a closer look at the enclosed chart. In my opinion, 15 trades in 13.5 years are not such a big deal for the type of dramatic improvement in returns. … Continue reading

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Expect More High-Tech Competition

Due to a crowding effect in HFT domain and a continuous decrease in profitability a lot of those firms are now moving to momentum, swing and trend-following domains in an effort to recoup their initial investment. Thus, retail traders and … Continue reading

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Adaptive Trend-Following Performance

This is a report of the performance of TFadapt, a trend-following system that adapts to changing market conditions, on historical data of 8 different international indices since the start of 1990. The outstanding and statistically significant performance of this system  in SPY … Continue reading

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Adaptive Trend-following Using the Randomness Index Indicator

The Randomness Index was introduced yesterday in another post. The value of this indicator is calculated for any set period using the closing prices. Under normal conditions the indicator swings between +100 and -100 although values beyond those extremes are also possible. Values between +10 … Continue reading

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