SI72: Crisis and how CTAs provide protection during stock market declines

Jan 26, 2020

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Today, we discuss how CTAs provide Investors with protection during stock market declines, how the term Crisis Alpha may be linked to reduced allocations to CTAs, the psychology behind managers chasing performance, worthwhile allocation percentages to Trend Following, short-term vs long-term CTA strategies, Trend Following as the perfect portfolio, and Diversification as a way to reduce risk. Questions answered this week include: What are some of the pros and cons of CFD trading, and do you have any tips for building a portfolio of CFDs? Should instruments that rarely make money be included in backtests, and how do you measure this without curve-fitting data?

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Episode TimeStamps:

00:00 – Intro

01:25 – Macro recap from Niels

02:41 – Weekly review of performance

18:39 – Top Tweets

54:51 – Andy (via TTU VoiceMail); Questions 1/2: What are some pros & cons of CFD trading? Do you have any tips for building a CFD portfolio?

01:02:56 – James; Question 3: Should instruments that rarely ever make money, be included in backtests, and how do you measure this without curve-fitting data?

01:14:22 – Benchmark performance update

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