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Managed Futures: Fast & Furious vs Slow & Steady

Short vs long-term trend followers

Nicolas Rabener
10 min read
17 May 2021

SUMMARY

  • Managed futures strategies aim to exploit short- or long-term trends
  • Short-term trend followers are often seen as offering better stock market crash protection characteristics
  • Our analysis highlights that the differences are marginal

INTRODUCTION

Aesop’s famous story of the race between the tortoise and the hare was put up to a test in 2016 when researchers made them compete with each other in real life. To the surprise of the live audience, the tortoise won indeed each time, just like in the fable. The hare was quicker out of the gate, but rarely finished the race and was overtaken by the tortoise that continued at its steady pace.

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