- in ETFs , Mean Reversion , Research , Trend Following by Cesar Alvarez
Mean Reversion vs Trend Following Through the Years
Something I am always thinking about is how the markets are behaving now vs the past few years vs several years ago. My edge on the strategies I trade depends on two main ideas. One, current market behavior is similar to what I tested on which is normally the last 5-10 years. Two, not too many others have found the same edge. Unfortunately for (2), more and more people are trading quant style and edges are harder to find and smaller when I do find them. The only thing I can control is continuing to research for new strategies.