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Trend‑following bets on continuation of price direction and works best on macro‑level assets
  • Trend strategies look for persistent price moves (higher highs, higher lows) and stay in the trade as long as the trend persists.
  • They are effective on assets with deep liquidity and low idiosyncratic noise (e.g., futures, major indices).
  • At the single‑stock level, idiosyncratic noise often destroys pure trend signals.
  • Nang notes that many large CTA firms successfully apply a single set of trend parameters across diverse markets.
Rishi NangTitans Of Tomorrow01:41:41

Supporting quotes

You can bet that prices continue in the direction they've been going. That's trend. Rishi Nang
There are firms out there that manage ... they trade three‑four hundred instruments ... and they are finding that they can trade trends with consistent parameter sets across all these markets. Rishi Nang

From this concept

Alpha Generation: Trend, Reversion & Technical Sentiment

Nang categorises the three core quantitative alpha families--trend, reversion, and technical sentiment--explaining their mechanics and typical use-cases.

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