Can the VIX index be traded as part of a successful Trend Following strategy? Do CTAs have the edge over traditional Hedge Funds by being invested in the less popular markets? Should some parameters be adjusted according to the market being traded, and can you expect returns from Long Positions & Short Positions to be…Read More
The financial crisis back in 2008 is slowly fading from the memories of investors. But for those of us who lived and traded through it, many important lessons were learned, and usually the hard way. For many investors, it was a period that can be best described as an Emotional Roller-Coaster, where billions of dollars were…Read More
A perfect set-up for the month of May…stocks at their most recent highs, moderate growth, a dovish FED, volatility back to it’s lows and confidence in the tariff war ending soon…was quickly crushed by new tweets and rhetoric that caught the bulls on the wrong foot.
The month of May left equity investors bruised whilst bond investors enjoyed and unforgiving rally during another flight to “safety” environment and reminded us all of the old saying “Sell in May…and go away”.
Global Marco is back with a vengeance…which could lead to big trends ahead.Read More
This week, we discuss the importance of process over outcome, how sports can be related to Trading, and whether mistakes are to be avoided completely or something we should look forward to learning from. Questions answered this week include: is Ray Dalio’s suggestion of 15 uncorrelated return streams the ultimate way to diversify your portfolio? …Read More
I get a lot of questions about ideas to help build the best Trading Model, and I understand why many aspiring managers feel that this is critical to their future success. There is though, a lot of truth in the saying: “Most people overvalue ideas and underestimate execution”. What I mean by that is, when you…Read More
Is ‘Buy & Holding’ the S&P500 index the perfect investment strategy? Should you apply Equal-Weighting across all of your Trading positions? Are long-term strategies the only way to avoid market noise? Also, we give our thoughts on why you should avoid ‘Fat-Tail Distributions’, Volatility versus Risk, how Trend Following strategies tend to ‘melt-up’ rather than…Read More
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
In today’s episode, we discuss whether or not Trend Following is more effective with Volatility Targeting, how cautious you should be of outlier events, how to use stress-levels as an indicator of how good your trading strategy is, and we give our thoughts on the concept of ‘Risk of Ruin’, in relation to the plight…Read More
Today, we discuss how to go from managing personal money to third-party money, in this current regulatory environment. We clear up some confusion surrounding the VIX market, touch on stocks vs commodities & how they affect on Trend Following strategies differently, as well as how to avoid a single driver from overly correlating your portfolio. We…Read More
In today’s episode, we discuss how much central banks or political events, can prevent or create market trends in the future. We also discuss AQR Capital Management’s recent study on Trend Following performance in the current decade, and whether or not we have seen the end of large market trends. We wonder if technology prevents…Read More