Regardless of the investment strategy that you apply to the markets, your strategy or approach needs to evolve over time. The way we did Trend Following back in the 1970s, 1980s, & 1990s is not exactly the way we do it today, and I think this can be said about most, if not all strategies. Now…Read More
“Over the years, I have allocated to a lot of short term CTAs… but due to the alpha decay factor to short-term models, not really made any money from it.” – John Fidler (Tweet) Welcome to Top Traders Round Table, a podcast series on managed futures brought to you by CME Group. On today’s episode,…Read More
April saw conflicting headlines over the future of trend following, but what the media did not focus on so much…is the failing of the stock and bond markets to “survive” without artificial life support.
As equities surge to all-time highs, volatility has all but vanished. Investors are betting the calm will last, shorting the CBOE Volatility Index, or VIX, at rates not seen in at least 15 years.
Large speculators, mostly hedge funds, shorted VIX futures contracts in sizes not seen before.Read More
I often see the press write that too much money is chasing the same trends, and this being the reason that Trend Following strategies have been performing a little under par in the last few years. So who better to ask if this really is true, than my friend Kathryn Kaminski, who of course co-wrote the…Read More
“Not all managed future strategies are created equal.” – John Fidler (Tweet) Welcome to Top Traders Round Table, a podcast series on managed futures brought to you by CME Group. On today’s episode, guest host Ranjan Bhaduri speaks with John Fidler, Senior VP and Director of Alternative Investments at Commonwealth Bank and Trust, Christopher Vogt,…Read More
For those of us who have been on the manager side for a while, you’ll know that investors love to analyse decades of performance data before deciding which manager they are going to invest with, and that makes a lot of sense. But we also come across investors who subsequently redeem based on just a…Read More
Kathryn Kaminski is one of my favorite people to discuss Trend Following with, because she has a great way of simplifying and explaining some of the key concepts of the strategy. Today, we talk about the phrase Crisis Alpha, and how it may be better to think about these strategies as Divergent strategies, because in…Read More
Often, a Trend following strategy is described as being a ‘Black Box’, as if something bad was going on. So it was refreshing to hear Scott Foster talk about Trend Following as being in fact, a ‘White Box’, or a ‘Transparent Box’, in comparison to other algorithmic strategies, which are often embraced by investors to…Read More
One of Wall Street’s Most Popular Trading Strategies Is Now Failing
Machines that decide when to buy and sell are struggling to keep up with central banks and Donald Trump.
Remember this headline from Bloomberg on March 1?
Well…as we close the month of March, it sure looks like this journalist got his timing right…Read More
“This is where the populism intercedes with the market risks. I think people look at these risks as independent risks, so they’re not looking at them and how they interrelate with the ecosystem of financial products, as well.” – Chris Cole (Tweet) Welcome to Top Traders Round Table, a podcast series on managed futures…Read More