Derivatives Straddled: Global Trend Towards Low Vol in All Instruments

Spectre2007

Spectre2007

Whats happening in the SPOOZ will manifest in pretty much most markets. The price action will morph into extremely low vol 'flat' pattern with abrupt repricing after catalysts to the next level...

Only politicians and inner circle will know what those catalysts will be. Algo's will mode to countertrend, and immediately switch to trend when catalysts are 'read' through machine learning. 80% of the time, the mode will be countertrend.
 
Very true. 15 years ago, 90% of what I was doing was trend/momentum.
Since then it has evolved to where about 90% of my strategies are in some way countertrend.
ie. looking for deviations from the mean, over/under valuations from fundamental fair value and also a host of other things picking up on weird market anomalies. Its been a painful shift in market dynamics which has caused countless traders to find other careers. But those who persevere and adapt can evolve their systems to make money in the new environment.
 
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