Trend following quant robots overdone

(Last Updated On: September 4, 2015)

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.

To read the entire article, go to http://bloom.bg/1QbndrI

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.

Join my Quant ELITE  membership to see how this plays out.  

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About caustic

Hi i there My name is Bryan Downing. I am part of a company called QuantLabs.Net This is specifically a company with a high profile blog about technology, trading, financial, investment, quant, etc. It posts things on how to do job interviews with large companies like Morgan Stanley, Bloomberg, Citibank, and IBM. It also posts different unique tips and tricks on Java, C++, or C programming. It posts about different techniques in learning about Matlab and building models or strategies. There is a lot here if you are into venturing into the financial world like quant or technical analysis. It also discusses the future generation of trading and programming Specialties: C++, Java, C#, Matlab, quant, models, strategies, technical analysis, linux, windows P.S. I have been known to be the worst typist. Do not be offended by it as I like to bang stuff out and put priorty of what I do over typing. Maybe one day I can get a full time copy editor to help out. Do note I prefer videos as they are much easier to produce so check out my many video at youtube.com/quantlabs