Trend followers fall under speeding equity markets
Riding trends in equity markets is proving to be a risky pastime for quant investors
All trend followers want for Christmas is for equity markets to slow down a little in 2021.
The sheer speed of the crash and recovery in stock markets this year – the quickest on record – led some quant investors to despair.
Conventional trend-following strategies – not the high-frequency type – take a view on where stocks are going by looking back at moves over a period of a month or more. These strategies, in equities, have been whipsawed by this year’s jagging markets.
“You don’t have long
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