>>clown - u have something against quants? hahha<<
I have nothing against quants per say. but when I read stuff like that:
“Most trend followers are on the same side of the trades, so when we get a risk-on environment, they get hammered hard.”
"Trend followers employ strategies that aim to take advantage of momentum in prices, whether rising or falling. They look for signals that a trend will continue or is about to end, often using technical indicators, such as moving averages, Bollinger bands and price envelopes."
“The advantage of these sophisticated systems is that, by removing the influence of human emotions, all investment decisions can be effectively back-tested,”
I think these are people with more money than brains, but then again it is not their money, it's their clients. Momo approach (because Momo always outperforms in the short term ?).... trend following.... backtesting.... Sophisticated systems, removing influence of the human emotions (and brains ?).....
I think this worked well in the 2008/2009 meltdown maybe and now they are trying again and again. The bad performance in June suggest that most of these funds were short and found themselves on the wrong side of the boat when the ECB actually did something.
My belief is that most hedge funds are not value oriented. the reason for this may be that they think depending on value is a tough way to make money and it is easier to program a computer to look for technical trends and just let them have their runs. It probably would work but there are many that are doing the same things, and probably with the same stocks. |
