Markets

So far in this series, we’ve only explored the long-only aspect of trend following. However, since we are using derivatives anyway, there is nothing stopping us from going short as well. But should you? The US-centric discussion around trend-following typically assumes that you go both long and short. The kicker for Indian domiciled traders is […]

Our previous post on trend-following used cross-correlations to pick a diverse set of assets and then split the time series to arrive at asset-specific lookback periods to power a binary on/off signal. There are a few drawbacks to this approach: Indian rules and regulations allow a very narrow set of assets to be traded. Being […]

Part I and Part II of our trend-following series illustrated the value of diversification and how it can be used to reduce portfolio drawdowns. The challenge is finding uncorrelated instruments as an Indian-domiciled trader. Irrespective of how you slice it, Indian equity indices are correlated to each other, we only have a handful of commodity […]

While the Indian business grew only 11%, the newly introduced power supply contract to Bangladesh added another 19% to the business growth.

The simplest construction of a trend-following strategy is to take the moving average of closing prices over a certain period of time and…

Here a list of stocks with direct exposure to the conflicting nations in the Middle East.

The US central bank – the Federal Reserve (the “Fed”) – meets every other month to set short-term rates. Given the vaunted position held by the American economy and sheer size of assets linked to these rates, the meetings draw a lot of attention. It is understandable that rates, bond, and currency traders spend a […]

What is a Streak? It is an uninterrupted set of up or down moves. Can you base your trades on streaks?

The ‘USD—Yen’ carry trade has been all over the news lately. The term ‘Carry trade’ may come across as a fancy new trading technique, especially to newbies to the capital market.

If you keep even a casual eye on the markets, you couldn’t have missed the reaction on election results day, June 4, 2024. In fact, that entire week was chaotic in the markets, with significant volatility. At one point, the market dropped nearly 8% on the results day but came full circle, closing flat by […]