How I Built an Investment Strategy That Beat the S&P 500 by 8% Annually for 8 Years
- Fabio Capela
- Systematic investing , Portfolio management , Investment performance , Market outperformance , Risk management , Asset allocation , Quantitative finance , Financial strategy
Eight years ago, I was frustrated. Like most investors, I was putting money into index funds and watching my portfolio swing wildly with every market tantrum. The conventional wisdom said I should just “buy and hold” the S&P 500, but watching 20% drawdowns every few years while barely beating inflation didn’t feel like a winning strategy.
Read MoreWhy Index Funds Are Sabotaging Your FIRE Timeline: The Systematic Solution
- Fabio Capela
- Fire , Systematic investing , Portfolio management , Financial independence , Investment strategies , Retirement planning , Asset allocation , Quantitative finance
Most FIRE investors are unknowingly adding 5+ years to their retirement timeline by sticking with “safe” index funds. While the investment world preaches the gospel of passive investing, a growing number of sophisticated investors are achieving Financial Independence faster through systematic strategies.
Read MoreTrend Following Strategies: What 137 Years of Research Reveals (2024 Guide)
- Fabio Capela
- Finance , Investing strategies , Portfolio management , Risk management , Trend following , Systematic trading , Market momentum , Volatility targeting , Machine learning , Reinforcement learning , Alternative data
Trend following has long been a cornerstone strategy for traders and investors. By systematically riding market momentum, trend following strategies have historically delivered strong risk-adjusted returns across various asset classes. But how does the strategy hold up in different environments, and what does academic research say about its efficacy? Let’s explore the key insights from a wealth of scientific literature on trend following.
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