The Quantopian Podcast

Quant Radio: Designing Robust Trend Following System

16 snips
Jan 31, 2025
Explore the art of trend-following strategies in investing! Discover how to differentiate real market trends from noise and the importance of clean signals. Dive into risk management techniques like risk budgeting and hierarchical risk parity to protect your investments. Learn about the 'CTA smile' concept and how it can enhance profits during market shifts. This engaging discussion offers valuable insights for both novice and experienced investors, highlighting the power of a systematic approach across asset classes.
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INSIGHT

Clean Signals

  • Identifying a "clean signal" is crucial for trend following.
  • This involves separating genuine market trends from random noise.
ADVICE

Prototype System

  • Build a trend-following prototype as your system's basic framework.
  • This prototype can be applied across various asset classes.
ADVICE

Diversification and Risk

  • Diversify investments across different asset classes to spread risk.
  • Risk management is essential when implementing trend following.
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