Why Your Trading Strategy Stops Working

Описание к видео Why Your Trading Strategy Stops Working

What is a trading edge?
Why does your trading strategy stop working all of a sudden?
What is alpha decay?
Why does alpha decay happen?
How do you work around alpha decay?

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Free, live Tail Watching signals: https://tailwatching.com/livesignals....

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Tail Watching is a long-only, trend following model (i.e. Buy positions in trending assets).

Traditional portfolio strategies follow the idea that asset prices follow a normal distribution.

However, the existence of fat tails suggests that asset returns are not normally distributed, but skewed.

The fat tails indicate that there is a probability (often larger than anticipated), that prices will move beyond 3 standard deviations.

The Tail Watching model capitalizes on these tails in trending liquid markets to generate outsized returns.

Investment philosophy of Tail Watching:

(1) Don't predict, just ride the trend for as long as you can
(2) Cut your losers short, let your winners run
(3) Diversify by asset class, industry & geography

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