So trend following is different from the strategy you are using in your retirement account, which is probably simply buy and hold. A particularly nice advantage of trend following is that is limits downside risk. So in 2008 a trend following strategy would have given you a sell signal and you would drawdown (lose account value) only 20% instead of 50%. It would also indicate you should “short” the market (bet against it) and you would actually make money. Although, you can do a more simple long-only trend following strategy too.
“There’s a real war for data scientists right now,” says Alexander Friedman, chief executive at GAM, the Swiss asset manager. “A number of investment firms have developed special relationships with universities to help source talent.”
Quant Guru David Shaw’s Riding Semiconductor Stocks to Top the Market: Advanced Micro Devices (AMD), Nvidia (NVDA)
It takes a wise billionaire to know how to stir up Wall Street and change the name of the game to quant, with seven of the ten monster hedge fund empires today all towering as quant funds. Shaw paved the way here, a man whose firm manages around $47 billion in assets and grabbed more than $25 billion for its investors closing out 2016.
Barron’s recently reported on a new study from Backend Benchmarking, which tracks the performance of robo-advisors. As of December 31 of last year, Backend has two full years of performance data for certain portfolios within several automated investment platforms. Their calculations show that the portfolio they built using the Charles Schwab Corporation’s Schwab Intelligent Portfolios had the best performance among similar taxable portfolios, with a return of 27.7%.