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erbsinator@erbsinator
1Settimana
Last month’s volatility was probably toxic for all momentum strategies, especially those using leveraged ETFs. My model also switched from commodities to the NASDAQ and now wants to switch back... but understanding why this happens really helps in assessing the situation and enjoying the roller coaster ride. Thanks for sharing and explaining, @Epi.
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Yoshika 🦋.@Yoshika
1Settimana
@erbsinator
When it comes to momentum, whipsaws are the main issue—see WTI in the post. Volatility drag is standard for the 3x ETF anyway.
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Epi@Epi
1Settimana
@Yoshika Exactly, those sawtooth patterns are a nightmare for momentum!
That's why, in my opinion, you shouldn't rely 100% on momentum models. It's too stressful.
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