16 - The Power of Systematic Trading

In this video, we ask why one would opt for a systematic approach to trading in such complex markets. The dynamic nature of markets makes them challenging to navigate using traditional, discretionary methods. Our methodology is grounded in the development of robust trading models that are designed to identify and capitalise on opportunities, particularly those arising from tail events, which are rare but significant market movements. At ECCM we believe that a systematic, rules-based process can help us navigate through the volatility of boom and bust cycles. It equips us to be well-positioned to potentially profit from unexpected market shifts and emerging risks that could otherwise adversely affect portfolio values. Our strategy is about harnessing the power of algorithms and data analytics to make informed, disciplined decisions, stripping away the emotional biases that often cloud judgment in trading. For more detail on academic research looking at how well trend following performs in periods of market dislocation refer to:
Hurst, B., Ooi Y.H. & Pedersen L.H., (2017). A Century of Evidence on Trend-Following Investing. The Journal Of Portfolio Management, Fall 2017, pp 15-29.
Miffre, J. & Rallis, G., (2007). Momentum strategies in commodity futures markets. Journal of Banking & Finance, 31 (2007), pp 1863-1886.
Moskowitz, T. J., Ooi, Y. H. & Pedersen L.H., (2012). Time series momentum. Journal of Financial Economics, 104 (2012), pp 228-250.

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IMPORTANT NOTICE
This video is prepared for educational purposes only, and for viewers who qualify as "wholesale clients" under sections 761G of the Corporations Act 2001 (Cth), or are persons who are not required to be given a regulated disclosure document under the Corporations Act. The information provided does not constitute financial product advice, or the provision of any financial services, financial or tax advice and does not take into account your objectives, financial situation or needs and does not purport to contain all relevant information necessary for making an investment decision. It is provided on the basis that the recipient is responsible for making their own assessment of financial needs and will seek further independent financial, taxation or other advice as is considered appropriate. Although we believe that the material is correct, no warranty of accuracy, reliability or completeness is given, except for liability under statute which cannot be excluded. Past performance may not be indicative of future performance and that no guarantee of performance, the return of capital or a particular rate of return is given by ECCM, any of its related body corporates or directors, officers or agents.