Systematic traders, what kind of systems are making money in this market?

Discussion in 'Trading' started by mizhael, Jul 29, 2010.

  1. I heard lots of people lost money these past a few months,
    lots of systems that previously worked broke down these days...
    What do you think?
    What type of systems are making money in this market?
    What do you do with those strategies that are not making money currently?
  2. The high-correlation environment isn't good for relative-value strategies. Not a lot of opportunity -> not a lot of profit.

    As far as what to do, that's what the new trader is: the guy who figures out if a change is cylical, temporary, or permanent, and makes the right decision.

    Fixed Income Arbitrage and Global Macro traders seem to make money, or ?
  4. Trend following, in all market environments.

    Please don't quote me the myth that they would not work in ranging markets because the market never ranges. It is the time frame one focuses on that gives you a range or trend perception. YTD while the S&P 500 was supposedly "ranging", my trend following system gained 25% without using leverage. Just had to reverse more often than in 2008/09, that's all. It still offered beautiful trends.