DUAL MOMENTUM | Momentum Trading Strategy by Gary Antonacci

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Financial Wisdom

Financial Wisdom

Күн бұрын

Dual Momentum is a popular concept developed by the highly credible Gary Antonacci.
A momentum trading strategy which switches between three different asset universes to achieve excellent returns with less volatility.
A simple market timing concept which has proven to reduce drawdowns significantly.
The concept is made up from what is referred to as Relative Momentum and Absolute Momentum.
By using a 12 month look back to determine which asset to be invested in and rebalancing every month.
Similar to the theory of Trend Following, the concept aims to follow the market, when the momentum waivers the concept tells us to move our trading capital accordingly.
A highly recommended book.
Links:-
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Stock Trading videos:-
Timing The Market - • You CAN Time The Marke...
Best Chart Patterns - • The Best Chart Pattern...
Trend Following Study - • DOES TREND FOLLOWING W...
Trade Like A Casino - • How to Trade Stocks (U...
Dollar Cost Averaging - • Dollar Cost Averaging ...
Stop Loss vs Buy Hold - • Stop Loss Strategy VS ...
Trading Theory - • Best Trading Strategy ...
Dow Theory - • DOW THEORY - What is i...
Past Bear Markets - • PAST BEAR MARKETS & Ho...
Buy & Hope - • FINANCIAL EDUCATION GO...
Warren Buffet - • WARREN BUFFET Investin...
David Ryan US Champion - • BEST Stock Trading Str...
Trading Expectations - • REALISTIC STOCK TRADIN...
Super Trader - • Dr Van Tharp - SUPER T...
Oliver Kell US Champion - • BEST Trading Strategy ...
The Disciplined Trader - • Video
Kristjan Qullamaggie - • KRISTJAN QULLAMAGGIE -...
Avoiding Drawdown - • AVOIDING DRAWDOWN - In...
Breakout Screener - • CONSOLIDATION BREAKOUT...
MACD Explained - • MACD INDICATOR EXPLAIN...
Risk Reward Ratio - • RISK REWARD RATIO - Tr...
William O'Neil Disciples • Trade Like a WILLIAM O...
Dual Momentun • DUAL MOMENTUM | Moment...
Dan Zanger • DAN ZANGER | Breakout ...
Paul Tudor Jones • PAUL TUDOR JONES - Bil...
Spread Betting Naked Trader • NAKED TRADER'S Guide t...
Martin Schwartz Pit Bull • MARTIN SCHWARTZ | PIT ...
Kelly Criterion • KELLY CRITERION | Ed T...
Timothy Sykes • TIMOTHY SYKES - Tradin...
Think And Trade Like A Champion • MARK MINERVINI THINK A...
Van Tharp • VAN THARP Trade Your W...
Turtle Traders • TURTLE TRADERS STRATEG...
Ed Seykota • ED SEYKOTA Interview b...
Thomas Bulkowski Candlestick patterns • CANDLESTICK PATTERNS b...
Nicolas Darvas • NICOLAS DARVAS Box Tr...
Swing Trading • SWING TRADING STRATEGI...
Lone Stock Trader • LONE STOCK TRADER - Fr...
Mark Douglas • NICOLAS DARVAS Box Tr...
Jesse Stine • JESSE STINE INSIDER BU...
Stan Weinstein • STAN WEINSTEIN - SECRE...
Peter Brandt • DIARY OF A PROFESSIONA...
Mark Minervini • MARK MINERVINI- Trade ...
Alexander Elder • TRADING FOR A LIVING D...
Investing videos:-
Joel Greenblatt - • JOEL GREENBLATT - THE ...
Tony Robbins - • MONEY MASTER THE GAME ...
Robert Kiyosaki - • RICH DAD POOR DAD REVI...
The Naked Trader - • THE NAKED TRADER - Rob...
Common Stocks Uncommon Profits - • COMMON STOCKS AND UNCO...
A Random Walk Down Wall Street - • A RANDOM WALK DOWN WAL...
Vanguard Index Investments - • VANGUARD INVESTMENTS |...
As a professional trader I have consumed hundreds of financial books and endured countless hours of self education. My hope is that this channel will reduce the learning curve duration of many aspiring traders by providing the key information in a concise and enjoyable manner.
I also offer a paid subscription service for those looking to see all my investment decisions.bit.ly/40S034v

Пікірлер: 149
@MarcusFred-wn3iv
@MarcusFred-wn3iv 11 ай бұрын
Great video. We all strive for financial independence and better life. It’s not difficult in achieving this through the right investment, living frugally, and budgeting. I’m glad I learned early in life to work hard for financial freedom
@MarcusFred-wn3iv
@MarcusFred-wn3iv 11 ай бұрын
@@MarcelPhilips sincerely, I’m truly inspired by your words. I’m very interested in investing and I have got a good sum of money which I’m ready to put in with the right information. My biggest fear is losing my money on the wrong investment. For this reason, I’m willing to listen to your suggestions and ideas on how to invest wisely.
@MarcelPhilips
@MarcelPhilips 11 ай бұрын
@@MarcusFred-wn3iv As an OAP with a lot of experience, I firmly believe that the success of any investment depends on having the right information, regardless of what others say, do whatever you set your mind to. Warren Buffer always says "be greedy when others are fearful and be fearful when others are greedy". This is certainly the trick to succeeding even when others fail. I made $100,000 working with MARTHA ALONSO HARA a licensed financial adviser . It’s been a promising experience so far with her.
@MarcusFred-wn3iv
@MarcusFred-wn3iv 11 ай бұрын
@@MarcelPhilips Please, how do I connect with your financial planner?
@MarcelPhilips
@MarcelPhilips 11 ай бұрын
@@MarcusFred-wn3iv quickly do a web check where you can connect with her, and do your research with her full name mentioned
@MarcusFred-wn3iv
@MarcusFred-wn3iv 11 ай бұрын
@@MarcelPhilips Thank you, Going through her profile on her webpage out of curiosity, and surprisingly she seems proficient. I appreciate this.
@James-100
@James-100 Жыл бұрын
What I really like about your book overviews is that you break down the strategies graphically and don’t just tell us that the book is good or bad. Excellent work and much appreciated.
@fatcapital88
@fatcapital88 Жыл бұрын
I've been watching your videos non-stop... it's hands down the best content on these complex topics... thank you!
@FinancialWisdom
@FinancialWisdom Жыл бұрын
Thanks, that means a lot🙏
@n0s41nt8
@n0s41nt8 3 жыл бұрын
I don't comment often, but this video and the wisdom in it was brilliant. Thank you.
@FinancialWisdom
@FinancialWisdom 3 жыл бұрын
I appreciate that!🙏
@adriancristea7924
@adriancristea7924 3 жыл бұрын
Thank you! Great video! I try to understand why people do not discuss more about this strategy! Mr Antonacci does not seem to be very popular compared to other „financial gurus”.
@FinancialWisdom
@FinancialWisdom 3 жыл бұрын
I dont think people accept the simplicty, assuming more complex systems will outperform
@FinancialWisdom
@FinancialWisdom 3 жыл бұрын
My Brokerage Account (Interactive Brokers) - bit.ly/3UGvn1U My Breakout Scanner - bit.ly/3ea6sl8 My Forum - www.financialwisdomTV.com/forum My Strategy Blueprint - www.financialwisdomtv.com/plans-pricing Edgewonk Trade Analysis Software - bit.ly/3xS6S7s Stock Screener & Backtesting - bit.ly/3oO1exN (20% Off Code = FWSDM) Stockopedia - bit.ly/2YIcAIn (25% Discount)
@obcane3072
@obcane3072 Жыл бұрын
His system is best for an employer sponsored retirement plan that limits investments to mutual funds. I like your application. I prefer to use a 3 month look back as it provides lower drawdowns but at the cost of more trading.
@simzou4373
@simzou4373 Жыл бұрын
Good job~ 재테크 책!!! 듀얼 모멘텀
@FinancialWisdom
@FinancialWisdom Жыл бұрын
Thanks!
@AdamHarrisTrader
@AdamHarrisTrader 3 жыл бұрын
Excellent- hadn't heard of this. Very impressed.
@AdamHarrisTrader
@AdamHarrisTrader 3 жыл бұрын
I know of rotating with bonds, but not heard of this book- thanks for doing it!
@FinancialWisdom
@FinancialWisdom 3 жыл бұрын
No problem, yes, simple but effective...
@jameskaran3121
@jameskaran3121 3 жыл бұрын
Excellent presentation, succinctly put. I have been applying a similar strategy with US ETFs for sector rotation using relative strengths and trend analysis. Reasonably good results but must improve on it. Thanks!
@FinancialWisdom
@FinancialWisdom 3 жыл бұрын
Thanks for sharing!
@suxxa
@suxxa 3 жыл бұрын
Dual Momentum Sector Rotation (DMSR) is also presentet in his book. In how many sectors did you invest at the same time? Do you use a Trendfilter for this strategy?
@mrhoplite2931
@mrhoplite2931 3 жыл бұрын
Good video! very well explained - even i understood it and that is saying something..
@FinancialWisdom
@FinancialWisdom 3 жыл бұрын
Glad to hear that!
@jamesstephen1516
@jamesstephen1516 3 жыл бұрын
Brother namaste, Thoughtful strategy.. minimum loss, maximum returns.. thank you
@FinancialWisdom
@FinancialWisdom 3 жыл бұрын
Always welcome
@based_yeoman9138
@based_yeoman9138 2 жыл бұрын
Helpful, thanks!
@FinancialWisdom
@FinancialWisdom 2 жыл бұрын
You're welcome!
@alexanderinsubordinate1861
@alexanderinsubordinate1861 2 жыл бұрын
The strategy at 2:42
@drjems
@drjems 3 жыл бұрын
Excellent
@FinancialWisdom
@FinancialWisdom 3 жыл бұрын
Thanks Jemin
@RetireCertain
@RetireCertain 3 жыл бұрын
Glad to see someone else appreciates Gary! Love your videos, thanks.
@FinancialWisdom
@FinancialWisdom 3 жыл бұрын
Thank you Retire Certain. Good luck with yours...🙏
@pamboyce5128
@pamboyce5128 2 жыл бұрын
By using a comparison chart in TC2000, I see over 12 months, the world index you mention (MSCI) greatly outperforms a Vanguard World Stock Index ETF with the symbol VT. Thus, I am seeking an ETF that better matches the MSCI. Any suggestions would be appreciated. In closing, I believe you are a great teacher, making concepts clear and understandable in a brief time. Please keep up your work, a service to so many!
@FinancialWisdom
@FinancialWisdom 2 жыл бұрын
Thanks Pam 🙏 I'll take a look
@p.m.8316
@p.m.8316 2 жыл бұрын
agreed great video
@sodds3599
@sodds3599 Жыл бұрын
Is there a site where you can track monthly the 12 month sliding rates of return of US equity, World Equity (excuding US) and US bonds?
@ShadabAsg
@ShadabAsg 3 жыл бұрын
please make video on crypto currency
@pusheenomics
@pusheenomics 3 жыл бұрын
All of your videos are excellent! Thanks a lot. What do you think about Larry Tentarelli's approach?
@FinancialWisdom
@FinancialWisdom 3 жыл бұрын
Thanks Adrian, I'll try to take a look👍
@veryslyfox
@veryslyfox 2 жыл бұрын
This system isn't working well now because all 3 asset classes are down big: bonds, US equities, and international equities. I think it needs to be expanded to include other asset classes like commodities, gold and RE.
@jazzyfriends4197
@jazzyfriends4197 Жыл бұрын
agreee
@cagrikanik2403
@cagrikanik2403 2 жыл бұрын
This book is staying in a corner and people do not make attention. For me, this is a base of all trading systems
@fatcapital88
@fatcapital88 Жыл бұрын
Here are my thoughts on his process... 1) I wonder how much his returns are skewed by an epic 40-year bull market in bonds (with falling rates), if he over-earned because of the secular change there, and similarly 2) the extent that the results were impacted by very long bull runs... if we have more of a sideways market and/or don't have a 40 year bond bubble this strategy could end up churning a lot more. I'm just thinking out loud.
@FinancialWisdom
@FinancialWisdom Жыл бұрын
You could well be right....
@Bigh141
@Bigh141 3 жыл бұрын
Great video as always, and I have viewed it twice and done some research on Gary A. It has many positive features not least Momentum and reduction of risk of loss, so I am looking to adopt it for my investments. I am in the UK where is the best place to find the 12 month data on the performance of S&P 500 Equities v T-Bonds and World Index excl USA? Should I use the data from Vanguard ETFs for instance? Or is there an easy place to do this comparison online?
@FinancialWisdom
@FinancialWisdom 3 жыл бұрын
HI Bigh, Not sure of an easy comparison but it would not take long looking at the S&P etc.
@aeksinsang932
@aeksinsang932 3 жыл бұрын
We buy mtum (momentum etf) takes out the guesswork and has computer algorithms figuring the momentum rates and key stocks
@suxxa
@suxxa 3 жыл бұрын
this strategy takes out the guesswork, so i dont know what you mean.
@aeksinsang932
@aeksinsang932 3 жыл бұрын
@@suxxa uou have to buy double, I buy one: MTUM- no need for a counterbalance headache
@km6206
@km6206 2 жыл бұрын
that fund does not shift to bonds or international equity. So, it's a different strategy completely.
@davidbarana7134
@davidbarana7134 3 жыл бұрын
Hi sir 👋 thank you so much for giving us free quality videos , Very detailed and informative explanation 👍
@FinancialWisdom
@FinancialWisdom 3 жыл бұрын
It's my pleasure David, thanks👍
@aldolabuonora
@aldolabuonora 2 жыл бұрын
@@FinancialWisdom a very interesting strategy, I am going to incorporate it, the only defect that I see is that world equities are highly correlated with PSY 500, more and more as the word if more globalized , therefore I wonder if there is an alternative to international equities that is less linked with USA market Thanks
@suthan2003
@suthan2003 2 жыл бұрын
Also a question. You said the principle is to look for 12 months return but the review happens every month for the rolling 12 months is that correct.....as an example: 1) If I have to rebalance my portfolio on 1st of Sep '21 then I have to look at Sep '20 to Aug '21 returns and so on for every month Is this correct understanding of the concept
@FinancialWisdom
@FinancialWisdom 2 жыл бұрын
yes that is my understanding👍
@dividenddepot
@dividenddepot 8 ай бұрын
Hello, love the content, do you factor in HV historical volatility, if so how do you measure?
@FinancialWisdom
@FinancialWisdom 8 ай бұрын
I use NATR
@goncaloveiga
@goncaloveiga 2 жыл бұрын
Quick question: when Antonacci says the conjecture indicates we should invest in S&P 500, does he mean one should only invest in those 500 companies? I’d be interested to know if his theory is expandable to Russel 2000 or 3000 equities. Thanks!
@FinancialWisdom
@FinancialWisdom 2 жыл бұрын
Good question, I guess his study did not cover all the indexes although the theory should hold true I would think...
@yli97
@yli97 2 жыл бұрын
@@FinancialWisdom Antonacci says he prefers to focus on very large indexes like the S&P 500 or the World Equities because the trend is more solid and stable and there is not as much research about time series momentum in the other indexes as there is in these two.
@phanquochung3924
@phanquochung3924 3 жыл бұрын
Endlessly appreciate content like this. Thank you guy
@FinancialWisdom
@FinancialWisdom 3 жыл бұрын
Glad you enjoyed it!
@dleifelgni
@dleifelgni 3 жыл бұрын
Well I will also say this here... Talking from my own experience as a cryptocurrency trader mostly BITCOIN TRADING as the leading asset, so far I have come to realize that the crypto market is of two sides. As some people will hold and wait for bitcoin to skyrocket so they can sell-off, while others will wait for bitcoin to fall so they can buy at a cheaper rate. However, I see all this worries baseless if they can't yield good profits, my advice still stands on involving in day trading by finding an accurate strategy/daily signals in other to accumulate and grow a very strong portfolio. For me, it's been so successful for over 7 months because I was smart enough to find working daily signals which are being provided by a pro trader known as Mr. James Carlson during the first 2 weeks I accumulated and grew my portfolio from 2btc to a total of 8.4btc which you will agree is a very good profit, James can be reach on Telegram (@ JamesC51 ) and whatsapp +447476717980 for more profitable system.
@jazzyfriends4197
@jazzyfriends4197 Жыл бұрын
how is using nifty 50 instead of world index ...
@zohahs5276
@zohahs5276 2 жыл бұрын
what equitied you have invested in World/US ? and what were your results do you have 10 year CAGR or 5yr CAGR? how long you been following this strategy?
@FinancialWisdom
@FinancialWisdom 2 жыл бұрын
My personal breakout strategy or Dual Momentum?
@zohahs5276
@zohahs5276 2 жыл бұрын
@@FinancialWisdom Dual momentum also what index you track from dual momentum for world index Do you check SPY for us index ? Thanks for making this amazing videos
@FinancialWisdom
@FinancialWisdom 2 жыл бұрын
@@zohahs5276 MSCI ACWI ETF for World and SPY for US index
@zohahs5276
@zohahs5276 2 жыл бұрын
@@FinancialWisdom great how long you been following the strategy and what are your results please do a detail video on that in future many thanks i will also try to read the book.
@axsup7g140
@axsup7g140 3 жыл бұрын
Method at 4:10 is not right look at the book.
@bharath8721
@bharath8721 3 жыл бұрын
Simple concept but not easy .... Analysing bonds are tricky because they have less liquidity than stocks. What happens if the bond tenure period is 5 years and when the equity starts outperform the bonds...we can't easily get out of the bond market because of illiquidity!.....Nice video!
@FinancialWisdom
@FinancialWisdom 3 жыл бұрын
I Agree Bharath, often why I only use for timing estimations and go cash instead of bonds..👍
@km6206
@km6206 2 жыл бұрын
just use a bond fund
@whatchitnow
@whatchitnow 3 жыл бұрын
A nice strategy but 12 months seems like a very long time, maybe a 6 month look-back window would be better? Also, why not to trade individual stocks using this strategy?
@FinancialWisdom
@FinancialWisdom 3 жыл бұрын
He thoroughly tested it.. in terms of individual stocks, there is still a risk element which is removed through total diversification of an index.
@whatchitnow
@whatchitnow 3 жыл бұрын
​@@FinancialWisdom not a big risk if trading mid and large cap stocks only.
@km6206
@km6206 2 жыл бұрын
a shorter lookback period will increase the probability of whipsaws. You will be in and out of the market many more times. Many of those trades will be false alarms. So, whipsaws reduce returns of absolute momentum strategies. And, it is for this same reason that individual stocks are more difficult to use with absolute momentum since their volatility is much higher than an index. Not to mention that if you have a small number of individual stocks, then you have large amount of idiosyncratic risk particular to each individual stock unlike an index.
@donniereidjr
@donniereidjr 3 жыл бұрын
I love this concept.
@FinancialWisdom
@FinancialWisdom 3 жыл бұрын
Simple but effective.👍
@donniereidjr
@donniereidjr 3 жыл бұрын
@@FinancialWisdom that’s the cool thing I’m learning about as a green investor new to the game. It seems that no one likes simplicity. They think that only analysis that involves predictions via rocket science analytics is more trustworthy. I’m learning that nothing is further from the truth. Simplified trading is easy for managing risk. I can’t wait to read the book. One question mate. Does it share the details regarding how to confirm which equities are leading monthly? Cheers!
@FinancialWisdom
@FinancialWisdom 3 жыл бұрын
@@donniereidjr Absolutely, it real does not need to be complicated, but the financial industry insists you to believe it is, mainly due to the mutual funds/hedge funds that advise on expensive management fees etc, not to mention the technical instruments which have flooded the market the last decade.
@ninaroxas4670
@ninaroxas4670 3 жыл бұрын
Excellent video.. Thanks for sharing the knowledge.
@FinancialWisdom
@FinancialWisdom 3 жыл бұрын
Glad it was helpful!
@mryes8184
@mryes8184 3 жыл бұрын
Getting in love with your vids man!
@FinancialWisdom
@FinancialWisdom 3 жыл бұрын
Good to hear !!🙏👍
@dleifelgni
@dleifelgni 3 жыл бұрын
Well I will also say this here... Talking from my own experience as a cryptocurrency trader mostly BITCOIN TRADING as the leading asset, so far I have come to realize that the crypto market is of two sides. As some people will hold and wait for bitcoin to skyrocket so they can sell-off, while others will wait for bitcoin to fall so they can buy at a cheaper rate. However, I see all this worries baseless if they can't yield good profits, my advice still stands on involving in day trading by finding an accurate strategy/daily signals in other to accumulate and grow a very strong portfolio. For me, it's been so successful for over 7 months because I was smart enough to find working daily signals which are being provided by a pro trader known as Mr. James Carlson during the first 2 weeks I accumulated and grew my portfolio from 2btc to a total of 8.4btc which you will agree is a very good profit, James can be reach on Telegram (@ JamesC51 ) and whatsapp +447476717980 for more profitable system.
@Rhino11111111
@Rhino11111111 Жыл бұрын
From the U.K. and there isn’t an etf for global ex us. The only etf is VEU which isn’t available to European investors
@sund5
@sund5 8 ай бұрын
When trying to explain a concept which is a combination of 2 other concepts, hence the name: "Dual". I find it supoptimal that the 2 oncepts: Absolute momentum and Relative momentum is not explanined in the video. A suggestion from my side: less focus on your own investment, more focus on what should be explained. Other than that, fine video. :-)
@ardyzara1540
@ardyzara1540 3 жыл бұрын
I don’t understand how this strategy avoided the stock crashes mentioned in the video
@FinancialWisdom
@FinancialWisdom 3 жыл бұрын
Hi Ardy, by moving from equities into bonds.
@charlieperro3746
@charlieperro3746 3 жыл бұрын
@@FinancialWisdom How do you avoid a crash by switching to bonds if the signal is the crash itself? It is hard to understand. Thanks for your videos!
@aeksinsang932
@aeksinsang932 3 жыл бұрын
By staying the course and not selling but soldiering the winter awaiting the summer so to speak
@yli97
@yli97 2 жыл бұрын
@@charlieperro3746 The crash signal comes from the equities. Then, by switching to bonds, you get a profit, since bonds usually rise during a market crash.
@knupaw
@knupaw 2 жыл бұрын
@@yli97 but if the market drops 20% in 2 days, you sell with 20% loss, on the lowest point? How is this working then?
@BobF510
@BobF510 7 ай бұрын
I'm fascinated by the depth of this content. A book with similar substance opened new avenues of thought for me. "Mastering Money Mindfulness" by Benjamin Hawk
@QUISE5380
@QUISE5380 3 жыл бұрын
Good video not a fan of the strategy but at least you saved me a read thanks
@FinancialWisdom
@FinancialWisdom 3 жыл бұрын
Thanks, Glad it helped...
@aeksinsang932
@aeksinsang932 3 жыл бұрын
It slays the s&p. How can you not be fan?
@luisoncpp
@luisoncpp 2 жыл бұрын
Be careful with this strategy, it has underperformed the S&P 500 during the last decade. Certainly avoiding large drawdowns during bear market is arguably more important than not performing as well during the bull market. However, the point here is that the strategy has only worked in backtesting and not in future returns (it's less than 10 years old). Telling what would have worked in the past is very different than predicting what's going to work in the future. Also, this model used treasury bonds returns as a metric, but now the low yields may have altered permanently the behavior of this metric and the effectiveness of the overall strategy. I don't claim that this strategy is now worthless, I'm just pointing out that it's too soon to claim victory.
@FinancialWisdom
@FinancialWisdom 2 жыл бұрын
Thanks for your input Luis, you make some very good points...
@yli97
@yli97 2 жыл бұрын
Trend Following should not be intended to increase returns but to reduce risk. In fact, many papers show that it has a higher sharpe ratio than buy and hold, but with lower returns and halved volatility.
@km6206
@km6206 2 жыл бұрын
@@yli97 you can use a little leverage (especially in the bond area) to increase the returns while keeping a similar sharpe ratio (along the lines of a risk parity idea).
@yli97
@yli97 2 жыл бұрын
@@km6206 you mean using buy and hold (no trend following or market timing) but leveraging a bit?
@km6206
@km6206 2 жыл бұрын
@@yli97 no, using the trend following with leverage. Basically, trending following over a long period will be on average less than 100% equities. That's because when equity tanks triggering you to sell the equity index, you be in bonds at that time. Most of the time, you will be in equities, but sometimes you won't. If a big equity downturn (e.g. the 2008 Financial Crisis, Japan's Lost Decade, the Great Depression, etc.) never happens in the future, then the times that you sell equities & go into bonds will likely cause you to underperform a 100% equity buy&hold strategy. Trend following will only outperform 100% equity buy&hold if the trend following strategy prevents you from experiencing a severe downturn. Those haven't happened super often in the past, so if the future is similar to the past (not necessarily a given though, right?), then most of the time you will likely underperforming 100% equity due to the 'whipsaws.' If you want to increase your chances of matching the 100% equity all-the-time portfolio, then you could leverage your trend following strategy portfolio in order to compensate for the times that you out of the equity market. Then, your portfolio's proportional equity-to-bond ratio will on average be a closer match to the 100% equity portfolio over a long period as well as be closer to the 100% equity portfolio's volatility. If you only leverage the equity portion, then that means most of the time you will own more than 100% equities. Furthermore, if you think about the risk parity portfolio ideas, then you can also leverage the bond portion as well when the trend following signal tells you to sell equities for bonds. Then, it becomes possible that your returns during the equity downturns could be greater since your bond position is also leveraged. Using leverage is kind of the idea related to the Sharpe ratio in first place, right? If you have a 60% equity-40% bond portfolio has a greater Sharpe ratio than 100% equity but also a lower expected return than the 100% equity, you can leverage the 60/40 portfolio up to so that the 60/40's expected return matches the 100% equity's expected return. Similarly, you can do something the same to the trend following portfolio. A trend following strategy consisting of just 2 types of markets (bond vs equity) is essentially a type of equity/bond portfolio with the difference being that traditional 60/40 portfolio has a static ratio of equity-to-bond (assuming frequent rebalancing) and the trend following portfolio is dynamically changing dependent on the trend signal. Hope that makes sense.
@puro52
@puro52 2 жыл бұрын
this guy stockpicks 90% of his awake time
@da4728
@da4728 3 жыл бұрын
This guy is just absolutely amazing ,the way he structure's his videos ,the way he clearly talks & explains things - subscribed to a few financial channels on youtube but genuinely this guy is up there for me as the best . Love from london ❤
@FinancialWisdom
@FinancialWisdom 3 жыл бұрын
Wow thanks D Ali, really means a lot🙏
@ninaroxas4670
@ninaroxas4670 3 жыл бұрын
very good, you summarised the book for me
@jazzyfriends4197
@jazzyfriends4197 Жыл бұрын
this is just kinda broken now due to bonds corelation with equities this year ngl
@FinancialWisdom
@FinancialWisdom Жыл бұрын
Yes a big curve ball introduced....
@ReizarfEgroeg
@ReizarfEgroeg 3 жыл бұрын
*Jack Bogle wants to know your location*
@mergodon
@mergodon 2 жыл бұрын
Hm this rule is hard to sell to simple. the S&P return was around 10% in the last 20 years and around 17% in the last 10. Now you are saying simple you can beat the market, and half the drawdown... The other funny thing is that, during the market crash, you are in "cash" so you have an opportunity to buy cheap asset classes like a house. Brilliant
@zaidone9229
@zaidone9229 3 жыл бұрын
awesome summary, got me interested in the book also going to read the whole thing.
@FinancialWisdom
@FinancialWisdom 3 жыл бұрын
Great, thanks DM🙏
@wongrichx
@wongrichx 3 жыл бұрын
very good, you summarised the book for me
@FinancialWisdom
@FinancialWisdom 3 жыл бұрын
Great, thanks Rick
@kirklenentine
@kirklenentine 3 жыл бұрын
This is so good..
@FinancialWisdom
@FinancialWisdom 3 жыл бұрын
Thanks Kirk👍
@umutalper9822
@umutalper9822 3 жыл бұрын
Thanks a lot, great.
@FinancialWisdom
@FinancialWisdom 3 жыл бұрын
You are welcome!
@williamkz
@williamkz 3 жыл бұрын
Thanks Gareth. Another good one.
@FinancialWisdom
@FinancialWisdom 3 жыл бұрын
Thanks William👍
@theinvestmentdoctor8178
@theinvestmentdoctor8178 3 жыл бұрын
Excellent video. That book was on my to-read list. Thanks for reviewing it. It's totally against the contrarian strategy which I prefer. apprecite your effort in making the video🙂
@FinancialWisdom
@FinancialWisdom 3 жыл бұрын
Thanks as always TID. Good luck.....
@david-lf9vn
@david-lf9vn 3 жыл бұрын
Another great video. To invest in uk stocks can you use the same principle but use the ftse all share instead of the S&P 500?
@FinancialWisdom
@FinancialWisdom 3 жыл бұрын
Thanks David, without looking at the back tested data i guess the same principle would apply yes..
@ikbenhet1989
@ikbenhet1989 Жыл бұрын
Wait what? That's an 17% return annually? That's not much this strategy sucks
@suthan2003
@suthan2003 2 жыл бұрын
Will you ever show your face :).....it is always better to put a face to the name
@FinancialWisdom
@FinancialWisdom 2 жыл бұрын
LOL i'm the Banksy of the trading world.
@nagababukokkiligadda2244
@nagababukokkiligadda2244 3 жыл бұрын
Sir.english sentence give under video.
@FinancialWisdom
@FinancialWisdom 3 жыл бұрын
Ill look into..
@stevesutton772
@stevesutton772 Ай бұрын
This book SUCKS
@vg-99
@vg-99 Жыл бұрын
Excellent
@FinancialWisdom
@FinancialWisdom Жыл бұрын
Thank you so much 😀
@karthikr7894
@karthikr7894 3 жыл бұрын
Excellent video.. Thanks for sharing the knowledge.
@FinancialWisdom
@FinancialWisdom 3 жыл бұрын
My pleasure!
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