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Specifically, there is a style of investing called “trend following” or “momentum” where you literally just buy things that are going up, and sell things that a
by dannyw 6y ago
Specifically, there is a style of investing called “trend following” or “momentum” where you literally just buy things that are going up, and sell things that are going down.
This works wonders and has been a constant source of factor alpha.
- eru 6y agoThey have been a reasonable source of alpha some of the time. But not a constant source all the time: trend following can badly go wrong. And, of course, because so many people do trend following these days, trend following itself will work less well in future.
- r_singh 6y agoIdentifying these "things" (assuming you're talking about options/futures) and getting the timing right is the hard part.