SI51: Improving Diversification through multiple trading approaches

Published: Sept. 2, 2019, 1:05 a.m.

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In this week\\u2019s show, we discuss using multiple systems to further enhance diversification, the differences between a portfolio meeting expectations versus benchmarking it against an Index, Trend Following in-house versus using an experienced Systematic Investment manager, having the temperament to stay the course with your investments, and the effectiveness of trying to predict the next moves of CTAs. Questions answered this week include: Are interest rates lower than usual at the moment? Does the market ever display any meaningful sentiments from the crowds? Do we use any rules for liquidity? What questions would we consider before allocating to a Systematic Trading strategy? What\\u2019s the maximum loss of equity we would be willing to accept due to one return driver, such as the Swiss Franc in 2015, and do we ever have to \\u2018step-in\\u2019 and override our systems?

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