Some trend followers are less than ‘pure’ – study
Sick of waiting for a crisis, some commodity trading advisers move from ‘pure trend’ to ‘trend-plus’
Trend followers are doing a little less trend following these days, a study by quant fund AlphaSimplex shows.
Commodity trading advisers (CTAs), another name for funds employing that approach, rely on markets trending steeply higher or lower, and can do well in times of financial reckoning, like 2008. But there has been no such sustained movement lately – trends have either been weak or suffered abrupt reversals.
So some purveyors of the approach have begun to dilute their investing away
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