#trading strategies


 

Could Trend-Following Be A Successful Trading Strategy? (Part V)

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 […]

Founder, StockViz
0
12 Dec 2024
 

Could Trend-Following Be A Successful Trading Strategy? (Part IV)

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 […]

Founder, StockViz
0
04 Dec 2024
 

Could Trend-Following Be A Successful Trading Strategy? (Part III)

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 […]

Founder, StockViz
1
21 Nov 2024
 

Same-Weekday Momentum

The paper Da, Zhi and Zhang, Xiao, Same-Weekday Momentum (SSRN) first came out on March 14, 2024 and has raked up quite a bit of interest since then. The authors present an effect where if you formed momentum portfolios by weekday, you end up with better returns than traditional momentum.  For example, to build Monday’s […]

Founder, StockViz
0
14 Jun 2024