This is a summary of my YouTube video on how trading has changed over the years. Trading is a complex subject, and analyzing how it has changed over the years requires a paper or even a book for an in-depth analysis. …

The short squeeze in the stock and bond markets occurred because equity investors and traders focused on the bullish aspects of this week’s employment report and ignored warnings from the Fed Chairman that interest rates may have to stay at high levels for longer than initially expected. The market was…

Although it is presented as a simple trading style that “lets profits run and cuts losses short”, in reality, trend-following has a huge optimization space. The result is high dispersion in the returns of various managers, periods of high performance, but also periods of extended underperformance. Background Trend-following is a…

This report includes 14 charts and tables. Access to the full report requires a Premium Articles or All-in-One subscription. Also discussed in the report: Why bond yields will continue to rise A mean-reversion in currencies The reason for Friday’s rebound in stocks Weekly Summary (October 2–October 6, 2023) Stocks ended…

It is a contradiction, but it appears to be the position of some CTAs, who do not like the Sharpe ratio but like their risk-adjusted returns. Passive equity investors respond to those who dismiss the value of the Sharpe ratio by arguing that they only like the total returns. …

The weekly systematic trading reports include a market summary, open positions, new signals, and the performance of six trading strategies Market Recap and Comments (October 2 — October 6, 2023)

Bitcoin delivered spectacular returns during its early days, when prices were low. Any hopes of similar returns in the future underestimate how unrealistic prices must become. Bitcoin speculation is on a path of diminishing returns. Spectacular annual returns were realized during the early days of Bitcoin. In mid-2011, a rise…

There have been two post-war periods in the US stock market, with sideways action for about twelve and a half years and large drawdowns from all-time highs. Is another such period possible? The two worst post-war periods in the US stock market are marked on the monthly S&P 500 chart…

Extremism has been on the rise again in recent years. Several decades ago, economic ideology — fascism versus communism — was the driving force behind right and left extremism. Both ideologies concentrated on how capital and resources were distributed. The differences are immaterial for this article. …