Trend following quant robots overdone
Robotic selling by quantitative investment funds tuned to volatility and price trends contributed to last month’s losses in U.S. stocks and is only about halfway completed, according to a JPMorgan Chase & Co. strategist.
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The highlight is here:
Computerized traders whose behavior is triggered by market signals like volatility or price trends rather than earnings or the economy have gotten extra attention since stocks began their biggest swoon in four years last month. Kolanovic predicted on Aug. 21 that quantitative funds had the potential to exacerbate swings in equities after the S&P 500 broke below a trading band that had held for most of the year.
In other words, if you are NOT using economic data or EPS, our trading robot will the rest of trading sheeple who get caught up in the excessive swings driven by bots. I think this will make them useless in the long run if there are too many trend following the same signals like volaitlity or price trends. As I keep saying, you need to innovate to stay away trading plays like this! Trend following may not work anymore. This is why I am automating this course in the video playlist below.FACEBOOK ACCOUNT and TWITTER. Don't worry as I don't post stupid cat videos or what I eat!